Atkinson and Stiglitz theorem in the presence of a household production sector

Cremer, Helmuth and Gahvari, Firouz (2015) Atkinson and Stiglitz theorem in the presence of a household production sector. Economics Letters, 126. pp. 91-95.

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Official URL: http://tse-fr.eu/pub/29113

Abstract

We show that the celebrated Atkinson and Stiglitz (1976) result on the uniformity of the commodity tax rates when preferences are weakly separable between goods and leisure does not hold when (at least) one of the goods is produced within the household. The result is restored if preferences are weakly separable in market goods on the one hand, and leisure and household goods on the other.

Item Type: Article
Language: English
Date: January 2015
Refereed: Yes
Uncontrolled Keywords: Atkinson and Stiglitz theorem, household production, weak-separability
JEL codes: H2 - Taxation, Subsidies, and Revenue
H5 - National Government Expenditures and Related Policies
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 16 Mar 2015 14:56
Last Modified: 07 Mar 2018 13:23
OAI ID: oai:tse-fr.eu:29113
URI: http://publications.ut-capitole.fr/id/eprint/16722

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