English, Article, Journal or magazine article edition: Income taxation and production efficiency in a simple two-sector economy Thomas Gaube

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Bookmark: http://trove.nla.gov.au/version/52269
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Income taxation and production efficiency in a simple two-sector economy
Author
  • Thomas Gaube
Physical Description
  • preprint
Notes
  • In a recent contribution, H. Naito (1999) has shown that production efficiency may be violated in the optimum with non-linear income taxation. Using a slightly simpler framework, this paper complements Naito's analysis in showing that production efficiency does not hold in the optimum with (i) non-linear and (ii) linear income taxation provided that second best and first best do not coincide. These findings indicate that income taxation generally implies the desirability to complement the distortion between consumer and producer prices by means of a corresponding distortion in input prices.
  • income taxation, production efficiency
  • RePEc:bon:bonedp:bgse14_2000
Language
  • English
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