Cremer, Helmuth; Pestieau, Pierre; Rochet, Jean-Charles - In: International Economic Review 42 (2001) 3, pp. 781-99
This article studies the optimal direct/indirect tax mix problem when individuals differ in several unobservable characteristics (productivity and endowments). It presents general expressions for the optimal commodity tax rates and proves that contrary to Atkinson and Stiglitz's (1976) result,...