Atkinson and Stiglitz theorem in the presence of a household production sector

Helmuth Cremer and Firouz Gahvari

No 831, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: We show that the celebrated Atkinson and Stiglitz (1976) result on the uniformity of the commodity tax rates when preferences are weakly separable between goods and leisure does not hold when (at least) one of the goods is produced within the household. The result is restored if preferences are weakly separable in market goods on the one hand, and leisure and household goods on the other.

Keywords: Atkinson and Stiglitz theorem; household production; weak-separability (search for similar items in EconPapers)
JEL-codes: H2 H5 (search for similar items in EconPapers)
Date: 2014-07
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Atkinson and Stiglitz theorem in the presence of a household production sector (2015)
Working Paper: Atkinson and Stiglitz theorem in the presence of a household production sector (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ide:wpaper:28363

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