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

Hellwig, Martin

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

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Hellwig, Martin
Max Planck Institute for Research on Collective Goods, Max Planck Society;

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http://www.coll.mpg.de/pdf_dat/2008_45online.pdf
(Preprint)

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Citation

Hellwig, M. (2008). A Note on Deaton's Theorem on the Undesirability of Nonuniform Excise Taxation.

Cite as: https://hdl.handle.net/11858/00-001M-0000-0028-6E7C-A

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.