Optimal commodity taxation with duty-free shopping

Autor:	Vidar Christiansen, Stephen C. Smith
Rok vydání:	2007
Předmět:	Economics and Econometrics Double taxation Public economics Social Welfare International taxation Microeconomics Business economics Accounting Economics Optimal tax Commodity (Marxism) Finance Externality Public finance
Zdroj:	International Tax and Public Finance. 15:274-296
ISSN:	1573-6970 0927-5940
DOI:	10.1007/s10797-007-9034-z
Popis:	International travellers are frequently offered the opportunity to purchase a certain quantity of goods duty-free. Individuals differ in their opportunities to benefit from duty-free shopping, and we focus on the implications of these differences for optimal commodity taxation within a version of the optimal tax model of Mirrlees (Review of Economic Studies, 38, 175–208, 1971). We show how duty-free alters the constraints on the use of commodity taxes to reduce the distortionary costs of income taxation or to reflect externalities. Beyond characterising optimal taxes in the duty-free regime, we discuss conditions under which allowing duty-free would increase or reduce social welfare.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::dd772960bd2cd74a4ed30ca0376662ef https://doi.org/10.1007/s10797-007-9034-z Zobrazit plný text záznamu Full text from SpringerLink