Coady, David; Drèze, Jean - In: International Tax and Public Finance 9 (2002) 3, pp. 295-316
Commodity taxes have three distinct roles: (1) revenue collection, (2) interpersonal redistribution, and (3) resource allocation. The paper presents an integrated treatment of these three concerns in a second-best general equilibrium framework, which leads to the “generalized Ramsey rule”...