TY - JOUR
T1 - Restoring Ramsey tax lessons to Mirrleesian tax settings
T2 - Atkinson–Stiglitz and Ramsey reconciled
AU - Cremer, Helmuth
AU - Gahvari, Firouz
N1 - Publisher Copyright:
© 2017, Springer-Verlag Berlin Heidelberg.
PY - 2017/6/1
Y1 - 2017/6/1
N2 - This paper restores many of the Ramsey tax/pricing lessons perceived as outdated in the optimal tax literature following the Atkinson and Stiglitz (J Public Econ 6:55–75, 1976) framework wherein differential commodity taxes are considered to be redundant. The key to our findings is the incorporation of a “break-even constraint” for public firms into the Atkinson and Stiglitz framework. Break-even constraints are fundamental to the regulatory pricing literature but have somehow been overlooked in the optimal tax literature. Incorporating them reconciles the optimal-tax and the regulatory-pricing views on Ramsey tax/pricing rules.
AB - This paper restores many of the Ramsey tax/pricing lessons perceived as outdated in the optimal tax literature following the Atkinson and Stiglitz (J Public Econ 6:55–75, 1976) framework wherein differential commodity taxes are considered to be redundant. The key to our findings is the incorporation of a “break-even constraint” for public firms into the Atkinson and Stiglitz framework. Break-even constraints are fundamental to the regulatory pricing literature but have somehow been overlooked in the optimal tax literature. Incorporating them reconciles the optimal-tax and the regulatory-pricing views on Ramsey tax/pricing rules.
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U2 - 10.1007/s00355-017-1046-8
DO - 10.1007/s00355-017-1046-8
M3 - Article
AN - SCOPUS:85016940514
SN - 0176-1714
VL - 49
SP - 11
EP - 35
JO - Social Choice and Welfare
JF - Social Choice and Welfare
IS - 1
ER -