On the Generalised Anti-inverse Elasticity Rule: An Existence Result

hdl:10013/epic.e4f9dbb8-0de9-4d86-836b-6f477fec4771

publisher:https://www.cesifo-group.de/DocDL/cesifo1_wp7041.pdf

On the Generalised Anti-inverse Elasticity Rule: An Existence Result

Minagawa, Junichi and Upmann, Thorsten

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Contact

berenike.bick [ at ] awi.de

Abstract

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.

Item Type

Article

Authors

Minagawa, Junichi and Upmann, Thorsten

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Divisions

AWI Organizations > Institutes > HIFMB: Helmholtz Institute for Functional Marine Biodiversity

Primary Division

Organizations > AWI Organizations > Institutes > HIFMB: Helmholtz Institute for Functional Marine Biodiversity

Programs

Basic Research > Helmholtz Independent Research

Primary Topic