Working Paper
On the Generalised Anti-inverse Elasticity Rule: An Existence Result
Junichi Minagawa, Thorsten Upmann
CESifo, Munich, 2018
CESifo Working Paper No. 7041
CESifo, Munich, 2018
CESifo Working Paper No. 7041
We consider an optimal commodity taxation problem under a consumption target and prove the existence of an optimal solution for the problem. This optimal solution obeys taxation rules that are contrary to standard taxation rules such as the inverse-elasticity rule. We also verify the necessary and sufficient condition for the optimal solution to exhibit uniform pricing.
CESifo Category
Public Finance
Empirical and Theoretical Methods
Public Finance
Empirical and Theoretical Methods
JEL Classification: H210