Corrective Taxation of a Consumption Externality in the Presence of an Optimal Non-Linear Income Tax

A. Josefsson

Working Papers from Uppsala - Working Paper Series

Abstract: This paper is concerned with the problem of combining a non-linear income tax with an indirect externality correcting tax. The analysis is performed in a model economy with two types of individuals and two types of consumption goods. The government wants to redistribute from the more able individuals to the less able, and also correct for the externality arising from the total consumption of the dirty good. It turns out that the optimal tax structure depends on the complementarity or sustainability between the dirty good and leisure.

Keywords: INCOME TAX; TAXATION; EXTERNALITIES; CONSUMPTION (search for similar items in EconPapers)
JEL-codes: H22 H23 H24 (search for similar items in EconPapers)
Pages: 38 pages
Date: 1997
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:uppaal:1997-14

Access Statistics for this paper

More papers in Working Papers from Uppsala - Working Paper Series UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().