Public good provision and the welfare effects of indirect tax harmonisation

• 成果类型: Article
• 署名作者: Lahiri, S; Raimondos-Moller, P
• 署名单位: Copenhagen Business School; University of Essex
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(97)00071-6
• 发表日期: 1998
• 页码: 253-267
• 关键词: indirect tax harmonisation; public goods

摘要

The paper considers the welfare effect of the harmonisation of indirect taxes in two open economies. The revenue from taxation is used for the production of a non-tradeable public good. The welfare levels are affected via two channels: (i) changes in the levels of public goad provision, and (ii) changes in deadweight loss associated with the taxes. We develop a number of rules of harmonisation and derive conditions under which they lead to potential Pareto improvement. (C) 1998 Elsevier Science S.A.