Deng, Xin; Ng, Yew-Kwang - In: Pacific Economic Review 9 (2004) 4, pp. 293-306
The 'diamond effect' exists when a consumer's utility depends on the exchange value, not just on the intrinsic consumption effects of the good. Yew-Kwang Ng has discussed the optimal tax on a pure 'diamond' good. This paper extends Ng's model to cover mixed diamond goods. It uses three...