Optimum taxation and the allocation of time

Henrik Jacobsen Kleven

doi:10.1016/S0047-2727(02)00192-5

Optimum taxation and the allocation of time

Henrik Jacobsen Kleven

Research output: Contribution to journal › Article › peer-review

29 Scopus citations

Abstract

A theory of optimal taxation is presented, building upon Becker's (1965) theory of the allocation of time. Optimal commodity taxation is governed by factor shares in household activities. Any market good which requires little household time, or even saves time, should carry a relatively low tax rate. This policy rule does not require the estimation of price elasticities and is therefore more applicable than traditional Ramsey rule taxation.

Original language	English (US)
Pages (from-to)	545-557
Number of pages	13
Journal	Journal of Public Economics
Volume	88
Issue number	3-4
DOIs	https://doi.org/10.1016/S0047-2727(02)00192-5
State	Published - Mar 2004
Externally published	Yes

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

Keywords

Commodity taxation
Household production
Time allocation

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10.1016/S0047-2727(02)00192-5

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title = "Optimum taxation and the allocation of time",

abstract = "A theory of optimal taxation is presented, building upon Becker's (1965) theory of the allocation of time. Optimal commodity taxation is governed by factor shares in household activities. Any market good which requires little household time, or even saves time, should carry a relatively low tax rate. This policy rule does not require the estimation of price elasticities and is therefore more applicable than traditional Ramsey rule taxation.",

keywords = "Commodity taxation, Household production, Time allocation",

author = "Kleven, {Henrik Jacobsen}",

note = "Funding Information: I wish to thank Claus Thustrup Kreiner, Knud J{\o}rgen Munk, Wolfram Richter, Harvey Rosen, Emmanuel Saez, Peter Birch S{\o}rensen, and two anonymous referees for valuable comments on an earlier draft of the paper. The activities of EPRU (Economic Policy Research Unit) are supported by a grant from the Danish National Research Foundation. ",

year = "2004",

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doi = "10.1016/S0047-2727(02)00192-5",

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AU - Kleven, Henrik Jacobsen

N1 - Funding Information: I wish to thank Claus Thustrup Kreiner, Knud Jørgen Munk, Wolfram Richter, Harvey Rosen, Emmanuel Saez, Peter Birch Sørensen, and two anonymous referees for valuable comments on an earlier draft of the paper. The activities of EPRU (Economic Policy Research Unit) are supported by a grant from the Danish National Research Foundation.

PY - 2004/3

Y1 - 2004/3

N2 - A theory of optimal taxation is presented, building upon Becker's (1965) theory of the allocation of time. Optimal commodity taxation is governed by factor shares in household activities. Any market good which requires little household time, or even saves time, should carry a relatively low tax rate. This policy rule does not require the estimation of price elasticities and is therefore more applicable than traditional Ramsey rule taxation.

AB - A theory of optimal taxation is presented, building upon Becker's (1965) theory of the allocation of time. Optimal commodity taxation is governed by factor shares in household activities. Any market good which requires little household time, or even saves time, should carry a relatively low tax rate. This policy rule does not require the estimation of price elasticities and is therefore more applicable than traditional Ramsey rule taxation.

KW - Commodity taxation

KW - Household production

KW - Time allocation

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SP - 545

EP - 557

JO - Journal of Public Economics

JF - Journal of Public Economics

IS - 3-4

ER -

Optimum taxation and the allocation of time

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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