Tariffs, Optimal Taxes, and Collection Costs
| Author | : Dubravko Mihaljek |
| Publisher | : |
| Total Pages | : 34 |
| Release | : 2006 |
| ISBN-10 | : OCLC:1291212419 |
| ISBN-13 | : |
| Rating | : 4/5 (19 Downloads) |
Book Synopsis Tariffs, Optimal Taxes, and Collection Costs by : Dubravko Mihaljek
Download or read book Tariffs, Optimal Taxes, and Collection Costs written by Dubravko Mihaljek and published by . This book was released on 2006 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies an optimal tax problem for a small open economy where collecting taxes is costly. It is shown that, in the presence of collection costs modeled as an increasing function of the tax rate: (a) the standard rules of optimal commodity taxation (the Ramsey, the inverse elasticity, the Corlett-Hague rules) may no longer be valid; (b) tariffs may replace domestic taxes as a second-best revenue-raising device; and (c) the optimal tariff/tax structure may be uniform rather than differentiated.
