The Optimal Taxation of Network Goods

Enda Hargaden, Andrew Hanson and Matthew Harris
Additional contact information
Enda Hargaden: University College of Dublin School of Economics, https://www.hargaden.com/enda/
Andrew Hanson: Department of Economics, University of Tennessee, https://www.andrewhanson.org/

No 2023-01, Working Papers from University of Tennessee, Department of Economics

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: Optimal taxation; network goods; consumption externalities; atmospheric externalities (search for similar items in EconPapers)
JEL-codes: H21 H23 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2023-09
New Economics Papers: this item is included in nep-mic and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://web.utk.edu/~jhollad3/RePEc/2023-01.pdf First version, 2023 (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:ten:wpaper:2023-01

Access Statistics for this paper

More papers in Working Papers from University of Tennessee, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Scott Holladay ().