"Optimal redistributive taxation in a multi-externality model"
, in Finanzarchiv, 2012
Optimal redistributive taxation in a multi-externality model
Sprache des Titels:
This paper extends the previous literature on optimal redistributive taxation in the
presence of externalities to a multi-externality setting. While taxes on income and on
'clean' commodities are still unaffected by the externalities, which confirms previous
results, I find that the existence of more than one externality-generating commodity has
important implications for the optimal Pigouvian tax rates. In general the Pigouvian
parts of taxation depend also on the externalities induced by the consumption of the
other commodities, implying that the interdependence of the externality-generating
commodities is relevant for tax policy.