TY - JOUR
T1 - Optimum taxation and the allocation of time
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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U2 - 10.1016/S0047-2727(02)00192-5
DO - 10.1016/S0047-2727(02)00192-5
M3 - Article
AN - SCOPUS:0344196709
SN - 0047-2727
VL - 88
SP - 545
EP - 557
JO - Journal of Public Economics
JF - Journal of Public Economics
IS - 3-4
ER -