Discussion Papers no. 809
Optimal indirect taxation and the uniformity debate: A review of theoretical results and empirical contributions
A review of the theoretical literature on optimal indirect taxation reveals that analytical arguments in favor of uniform indirect taxation seem weak and rather unrealistic; hence determining the optimal tax structure remains an empirical issue.
A review of the theoretical literature on optimal indirect taxation reveals that analytical arguments in favor of uniform indirect taxation seem weak and rather unrealistic; hence determining the optimal tax structure remains an empirical issue. However, reviewing the empirical contributions shows that most of them operate under rather restrictive and simplistic frameworks. The empirical support for uniformity seems weak, particularly when the models approach real world complexity. It appears that within a many-consumer economy, differentiated and progressive indirect taxation is likely to be the optimal solution.
About the publication
- Title
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Optimal indirect taxation and the uniformity debate: A review of theoretical results and empirical contributions
- Authors
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Odd Erik Nygård, John T. Revesz
- Series and number
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Discussion Papers no. 809
- Publisher
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Statistics Norway
- Topic
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Discussion Papers
- ISSN
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1892-753X
- Language
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English
- About Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Contact
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Statistics Norway's Information Centre