Cremer, Helmuth; Gahvari, Firouz; Ladoux, Norbert - 2008
This paper re-examines the optimal tax design problem (income and commodities) in the presence of externalities. The … expressions for the optimal tax on private goods; (ii) externalities do not affect commodity tax formulas (linear and nonlinear …) for private goods; (iii) externalities do not affect the income tax structure if commodity taxes are nonlinear and affect …
