Measuring Tax Efficiency: A Tax Optimality Index

Arbeitspapier

This paper introduces an index of tax optimality that measures the distance of some current tax structure from the optimal tax structure in the presence of public goods. In doing so, we derive a [0, 1] number that reveals immediately how far the current tax configuration is from the optimal one and, thereby, the degree of efficiency of a tax system. We call this number the Tax Optimality Index. We show how the basic method can be altered in order to derive a revenue equivalent uniform tax, which measures the size of the public sector. A numerical example is used to illustrate the method developed.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working paper ; No. 5-2004

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Public Goods
• Thema: Tax optimality index ; excess burden ; distance function

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Raimondos-Møller, Pascalis ; Woodland, Alan D.
• Ereignis: Veröffentlichung
• (wer): Copenhagen Business School (CBS), Department of Economics
• (wo): Frederiksberg
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/208480
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ