Chang, Ming; Peng, Hsiao-Ping - In: International Tax and Public Finance 19 (2012) 5, pp. 650-659
This paper examines the Laffer effect in the Ramsey tax-model with linear consumption taxes and a representative consumer. It is assumed that the private goods and the public good are weakly separable. It is demonstrated that if all of the private goods are weak gross complements to each other,...
