The Optimal Taxation of Network Goods

Enda Hargaden, Andrew Hanson and Matthew Harris

MPRA Paper from University Library of Munich, Germany

Abstract: We derive optimal tax formulas for network goods. The solution trades-off contemporaneous revenue collection against the discounted future flows of reduced network growth. We provide conditions under which the optimal tax sequence is time-invariant, and show that the rates should in general change over time. A quantitative model with consumer heterogeneity highlights patterns in these optimal sequences, and underscores the equity trade-offs

Keywords: Public Finance; Optimal taxation; network goods; consumption externalities; atmospheric externalities. (search for similar items in EconPapers)
JEL-codes: H20 H21 H23 (search for similar items in EconPapers)
Date: 2023-08-01
New Economics Papers: this item is included in nep-mic, nep-net, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/118661/1/MPRA_paper_118661.pdf original version (application/pdf)

Related works:
Working Paper: The Optimal Taxation of Network Goods (2023)
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:pra:mprapa:118661

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().