Optimal Commodity Taxation and Redistribution within Households

Olivier Bargain and Olivier Donni

No 5608, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using a collective model of consumption, we characterize optimal commodity taxes aimed at targeting specific individuals within the household. The main message is that distortionary indirect taxation can circumvent the agency problem of the household. Essentially, taxation should discourage less the consumption of a certain group of goods: those for which the slope of the Engel curves is larger for the targeted person.

Keywords: targeting; intrahousehold distribution; optimal commodity taxation (search for similar items in EconPapers)
JEL-codes: D13 D31 D63 H21 H31 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011-03
New Economics Papers: this item is included in nep-pub
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Citations: View citations in EconPapers (1)

Published - published in: Economica, 2014, 81 (321), 48-62

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Related works:
Journal Article: Optimal Commodity Taxation and Redistribution within Households (2014)
Working Paper: Optimal Commodity Taxation and Redistribution within Households (2014)
Working Paper: Optimal Commodity Taxation and Redistribution within Households (2011)
Working Paper: Optimal Commodity Taxation and Redistribution within Households (2011)
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