The paper studies optimal redistributive taxation when the government cannot commit the future policy. The framework used is one in which individuals can revise their consumption-savings decisions slightly more often than the government can change tax policy.

We offer a model for the distribution of consumption over categories of expenditure. We developed this model for consumer demand against the background of analysing price-based substitution between imported and domestically produced products.

The policy of allowing households to choose whether to have their water consumption metered is investigated . A simple model is constructed, in terms of which it is shown that such a policy is optimal within an appropriate range of parameter values for the demand and supply of water.

In this paper, we seek to adapt the analysis of Moshini et al by proosing a block structure for the price parameter matrix. This approch is slightlymore restrictive in terms of constraining the substitution effects in a s ingle level demand system, and so conserves further degrees of freedom.