Optimum taxation and the allocation of time

Research output: Contribution to journalArticlepeer-review

27 Scopus citations


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 languageEnglish (US)
Pages (from-to)545-557
Number of pages13
JournalJournal of Public Economics
Issue number3-4
StatePublished - Mar 2004
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


  • Commodity taxation
  • Household production
  • Time allocation


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