A Note on Deaton's Theorem on the Undesirability of Nonuniform Excise Taxation

8 Pages Posted: 3 Dec 2008

See all articles by Martin F. Hellwig

Martin F. Hellwig

Max Planck Institute for Research on Collective Goods; University of Bonn - Department of Economics; European Corporate Governance Institute (ECGI)

Date Written: December 1, 2008

Abstract

The paper provides an extension and a new proof of Deaton's theorem on the undesirability of nonuniform excise taxation when income taxes are affine and preferences over consumption goods are separable from labour-leisure choices, homothetic, and identical across agents.

Keywords: Optimal Excise Taxes, Atkinson-Stiglitz Theorem, Deaton's Theorem

JEL Classification: H21

Suggested Citation

Hellwig, Martin F., A Note on Deaton's Theorem on the Undesirability of Nonuniform Excise Taxation (December 1, 2008). MPI Collective Goods Preprint, No. 2008/45, Available at SSRN: https://ssrn.com/abstract=1310004 or http://dx.doi.org/10.2139/ssrn.1310004

Martin F. Hellwig (Contact Author)

Max Planck Institute for Research on Collective Goods ( email )

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University of Bonn - Department of Economics

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