Kleven, Henrik Jacobsen; Richter, Wolfram F; Sorensen, … - In: Oxford Economic Papers 52 (2000) 3, pp. 584-94
This paper suggests that the optimal tax system should favour market-produced services which are close substitutes for home-produced services. First, we modify the classical Corlett-Hague rule for optimal commodity taxation by showing that it may be optimal to impose a relatively low tax rate on...