Yet Another Reason to Tax Goods

Carlos Eugênio da Costa ()

No 52, Econometric Society 2004 Latin American Meetings from Econometric Society

Abstract: In this article we write a two period taxation model where: \QTR{it}{i)} private information changes through time; \QTR{it}{ii)} savings choices by an agent that are not observed, \QTR{it}{iii)} affect preferences conditional on the realization of types. The simultaneous appearance of these three elements cause optimal commodity tax to depend on off-equilibrium levels of savings. As a consequence, separability no longer suffices for the uniform taxation prescription of Atkinson and Stiglitz to obtain. In what regards capital income taxation we show that, in the most 'natural' cases, return on capital ought to be taxed

Keywords: Optimal Taxation; Non-observable savings; Dynamic Agency. (search for similar items in EconPapers)
JEL-codes: D82 H21 (search for similar items in EconPapers)
Date: 2004-08-11
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Yet Another Reason to Tax Goods (2009)
Working Paper: Yet Another Reason to Tax Goods (2006)
Working Paper: Yet another reason to tax goods (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ecm:latm04:52

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