Optimal Taxation with Durable Goods

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Minhyeon Jeong Chul-In Lee
• 간행물 정보: 『한국재정학회 학술대회 논문집』2012년도 춘계학술대회 논문집, 517~550쪽, 전체 34쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2012.03.30

영문 초록

Durable goods have interesting economic features which warrant research in various fields of modern economics. This paper examines optimal taxation with durable consumption goods under uncertainty. We show that a stochastic economy should levy a heavier tax rate on durables than the tax rate on nondurables given that durables function as an insurance which helps consumption smoothing. This means that the social planner needs to discourage the excessive hoarding of durables in view of social welfare. This inference can be buttressed by our finding that the uniform tax rule still preserves in a deterministic economy. A notable finding is that the non-uniform commodity tax rule is derived under perfect credit markets. This suggests that the non-uniformity stems from the unique feature of durables that generates a persistent utility flow regardless of random shocks, which capital does not have. Due to this independent role of durables that reduces the utility gap between good and bad states, the positive effect of the intratemporal tax wedge between nondurables and durables should balance its distortionary effect at the optimum.

목차

Abstract

1. Introduction

2. The Model

3. Main Results

4. Conclusion

Appendix A: Construction of Ramsey Problem

Appendix B: Proofs of Lemma 1 and Proposition 3

Appendix C: Simulation

Reference

키워드

optimal taxation durable goods uniform tax rule