Indirect Taxation And Redistribution: The Scope Of The Atkinson-stiglitz Theorem

Robin Boadway and Pierre Pestieau

No 1005, Working Paper from Economics Department, Queen's University

Abstract: The Atkinson-Stiglitz Theorem states that if labor is weakly separable from goods in household utility functions, differential commodity taxation should not be not part of an optimal redistributive tax system. This Theorem, which is arguable the most policy-relevant result to come out of the optimal income tax literature, has come under considerable scrutiny in the literature. We consider how robust it is with respect to differences in needs or endowments of goods, more than one type of labor supply, differences in preference for leisure, and restrictions on policy instruments.

Keywords: Indirect Taxation; Optimal Taxation (search for similar items in EconPapers)
JEL-codes: H2 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2002-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1005.pdf First version 2002 (application/pdf)

Related works:
Working Paper: Indirect taxation and redistribution: the scope of the Atkinson-Stiglitz theorem (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1005

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