Optimal redistributive taxation in a multi-externality model

Arbeitspapier

This paper extends the previous literature on optimal redistributive taxation in the presence of externalities to a multi-externality setting. While taxes on income and on 'clean' commodities are still unaffected by the externalities, which confirms previous results, I find that the existence of more than one externality-generating commodity has important implications for the optimal Pigouvian tax rates. In general the Pigouvian parts of taxation depend also on the externalities induced by the consumption of the other commodities, implying that the interdependence of the externality-generating commodities is relevant for tax policy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State ; No. 1107

Classification and Topics

• Classification: Wirtschaft ; Asymmetric and Private Information; Mechanism Design ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
• Subject: Optimal Taxation ; Externalities

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eckerstorfer, Paul
• Event: Veröffentlichung
• (who): Johannes Kepler University Linz, NRN - The Austrian Center for Labor Economics and the Analysis of the Welfare State
• (where): Linz
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/115070
• Last update: 10.03.2025, 11:44 AM CET