This paper examines the optimal commodity tax rate structure in a single-person economy in which income taxes are imposed on different factor incomes at different rates. It is shown that in such an economy, the optimal commodity tax rate is higher for the first commodity if (i) it is the weaker...

This paper examines the optimal tariff structure under a revenue constraint. When a fixed level of tax revenue has to be collected from the tariff alone, no adjustment in tariff rates can achieve an efficient resource allocation, even in a small open economy. Hence, the optimal tariff problem...

This paper examines theoretically the structure of optimal (Nash equilibrium) tariff rates under retaliation in a two-country economy with more than two traded goods. We provide a condition under which the equilibrium tariff rates become uniform in both countries, and explore the ranking of the...