Differential Taxation, Public Goods, and Economic Efficiency
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Differential factor taxes3 make the marginal rates of substitution of different factors in different industries different, and hence interfere with productive efficiency as discussed by the authors, and therefore interfere with the efficiency of different industries.Abstract:
(2) Differential factor taxes3 make the marginal rates of substitution of different factors in different industries different, and hence interfere with productive efficiency. Examples include the corporate income tax, which differentiates between capital used in the corporate and non-corporate sectors; the selective employment tax; and the differential treatment of gasoline used in road transportation and in agriculture.read more
Citations
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Journal ArticleDOI
The design of tax structure: Direct versus indirect taxation
TL;DR: In this article, the authors reexamine the age-old question of direct versus indirect taxation and the relationship of these taxes to the goals of efficiency, vertical equity and horizontal equity, and argue that any treatment of the choice of tax structures must be centrally concerned with distributional considerations.
Journal ArticleDOI
Optimal Taxation in the Presence of Externalities
TL;DR: In this paper, the authors integrate the theory of optimal taxation with the analysis of the use of indirect taxation to counteract negative external effects (Pigovian taxes), and show that the Pigovian principle holds in a modified form in the latter case as well.
Journal ArticleDOI
Pigou, taxation and public goods
TL;DR: In this article, the authors show that a necessary condition for Pareto optimality is that the sum of the marginal rates of substitution (MRS) between a public good and a private good be equal to the marginal rate of transformation (MRT).
Journal ArticleDOI
Optimal tax theory: A synthesis
TL;DR: In this article, necessary and sufficient conditions for optimal taxation are derived when taxes are constrained to be linear, when the form of taxation is unconstrained, and when some commodities are subject to nonlinear taxation, the remainder to proportional taxation.
Book ChapterDOI
Inflation in the theory of public finance
TL;DR: The tax-like effect of an increase in the anticipated rate of inflation has been studied by various authors as mentioned in this paper, who have had various experiments in mind and thus arrived at differing measures of the revenue from inflation.
References
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Journal ArticleDOI
The Pure Theory of Public Expenditure
TL;DR: In this paper, the authors propose a method to use the information of the user's interaction with the service provider in order to improve the quality of the service provided to the user.
Journal ArticleDOI
A Contribution to the Theory of Taxation
TL;DR: In this paper, the authors consider the problem of adjusting the marginal utility of money to different people in a purely competitive system with no foreign trade and assume that private and social net products are always equal or have been made so by State interference not included in the taxation.
Book ChapterDOI
Optimal departures from marginal cost pricing
TL;DR: In this article, the authors focus on departures from marginal cost pricing and theorems developed for resource allocation for optimal allocation or resources, and the level of tax revenue that will be collected by the government.
Journal ArticleDOI
Sur la gestion des Monopoles Publics astreints a l'equilibre budgetaire
TL;DR: In this article, the problem posed by l'incompatibilite de la regle de vente au cout marginal preconisee par les Welfare Economics, and les conditions d'equilibre budgetaire imposees par les Pouvoirs Publics aux entreprises nationalisees, is discussed.