Cremer, Helmuth and Gahvari, Firouz (2017) Restoring Ramsey tax lessons to Mirrleesian tax settings: Atkinson-Stiglitz and Ramsey reconciled. Social Choice and Welfare, 49. pp. 11-35.

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Abstract

This paper restores many of the Ramsey tax/pricing lessons perceived as outdated in the optimal tax literature following the Atkinson and Stiglitz (J Public Econ 6:55–75, 1976) framework wherein differential commodity taxes are considered to be redundant. The key to our findings is the incorporation of a “break-even constraint” for public firms into the Atkinson and Stiglitz framework. Break-even constraints are fundamental to the regulatory pricing literature but have somehow been overlooked in the optimal tax literature. Incorporating them reconciles the optimal-tax and the regulatory-pricing views on Ramsey tax/pricing rules.

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• Atkinson-Stiglitz and Ramsey reconciled: Pareto efficient taxation and pricing under a break-even constraint. (deposited 09 Jul 2014 17:36)
  • Restoring Ramsey tax lessons to Mirrleesian tax settings: Atkinson-Stiglitz and Ramsey reconciled. (deposited 13 Apr 2018 14:34) [Currently Displayed]