EconPapers    
Economics at your fingertips  
 

Taxation and Pricing of Agricultural and Industrial Goods

Raaj Sah () and Joseph Stiglitz

No 1338, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper presents an analysis of price reform and of optimal pricing and taxation of agricultural and industrial goods in modern-day LDCs. Our analysis is based on a general equilibrium paradigm with a multitude of goods and income groups. It is consistent with several alternative institutional structures with in the agricultural and the industrial sectors, as well as with alternative hypotheses concerning unemployment and migration of labor across the two sectors.This approach differs substantially from the standard tax literature with regard to the structure of the economy and the set of admissible taxes.The rules of price reform which we derive are quite simple to implement, requiring only the knowledge of observable parameters such as price elasticities of demand and supply. The determination of optimal prices (and taxes) requires, in addition, the relative welfare weights on individuals' incomes and on investment. We show that it is desirable, ingeneral, to levy import and export taxes. Among new results are those presenting conditions under which all of the goods belonging to certain categories (such as all purchased agricultural inputs or all agricultural outputs which are not consumed) should be either taxed or stibsidized.

Date: 1984-04
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published as "The Taxation and Pricing of Agricultural and Industrial Goods in Developing Economies." From The Theory of Taxation for Developing Countries, edited by David Newbery and Nicholas Stern, pp. 426-461, Oxford: Oxford University Press, 1987.
Published as in "The Theory of Taxation for Developing Countries," Chapter 16, ed. D.M.G. Newbery and N.H. Stern.

Downloads: (external link)
http://www.nber.org/papers/w1338.pdf (application/pdf)

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:nbr:nberwo:1338

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w1338

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-08-20
Handle: RePEc:nbr:nberwo:1338