On the Generalised Anti-inverse Elasticity Rule: An Existence Result
2018
Minagawa, Junichi | Upmann, Thorsten
We consider an optimal commodity taxation problem under a consumption target and prove the existence of an optimal solution for the problem. This optimal solution obeys taxation rules that are contrary to standard taxation rules such as the inverse-elasticity rule. We also verify the necessary and sufficient condition for the optimal solution to exhibit uniform pricing.
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