On commodity tax harmonization and public goods provision
Kotsogiannis, Christos (CESIfo)
López García, Miguel Ángel (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada)

Date:	2021
Abstract:	This paper argues that Pareto improvements based on harmonizing tax reforms expressed in terms of the divergence between actual and optimal tax structures and over/under provision of public goods require the use of 'pseudo-optimal' taxes instead of optimal ones. 'Pseudo-optimal' taxes are defined as those obtained using the optimal tax formulas but evaluated at any arbitrary initial tax structure. Within this context the paper reconfirms existing results showing that tax harmonization emerges as a strong policy instrument in achieving a potential Pareto-improvement.
Grants:	Ministerio de Ciencia e Innovación RTI2018-095799-B-I00
Note:	This study was supported by the Economic and Social Research Council (ES/S00713X/1, Kotsogiannis) and the Spanish Ministry of Science, Innovation and Universities (RTI2018-095799-B-I00, Lopez-Garcia). The usual caveat applies.
Note:	Altres ajuts: acords transformatius de la UAB
Note:	Altres ajuts: ESRC/ES/S00713X/1
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original.
Language:	Anglès
Document:	Article ; recerca ; Versió publicada
Published in:	Journal of Public Economic Theory, 2021 , ISSN 1467-9779

DOI: 10.1111/jpet.12535

8 p, 434.8 KB

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