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Bling Bling Taxation and the Fiscal Virtues of Hip Hop

Per Engström ()

No 2010:7, Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics

Abstract: The paper extends Ng’s (1987) model of optimal taxation of diamond goods — goods that are valued solely for their costliness. We extend his findings by analyzing how other goods should be taxed in the presence of pure diamond goods; modified Ramsey rules are derived in a basic single-type model as well as in a two-type model with redistribution. One key finding, that may be surprising and rather provoking, is that close complements (hip hop music) to diamond goods (bling bling) should be heavily subsidized.

Keywords: optimal taxation; status; luxury taxation (search for similar items in EconPapers)
JEL-codes: H20 H21 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2010-08-17
New Economics Papers: this item is included in nep-pub
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Citations: View citations in EconPapers (1) Track citations by RSS feed

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Journal Article: Bling bling taxation and the fiscal virtues of hip hop (2011) Downloads
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