Indirect taxes contribute to a sizeable part of government revenues around theworld. Typically there are a few different tax rates, and the goods are partitionedinto classes associated with each rate. The present paper studies how to group thegoods in these few classes. We take as given the...

Indirect taxes contribute to a sizeable part of government revenues around the world. Typically there are few different tax rates, and the goods are partitioned into classes associated with each rate. The present paper studies how to group the goods in these few classes. We take as given the...

This paper examines a symmetric Nash equilibria of a two-country model of fiscal competition with a continuum of taxable commodities in each country. The innovation is to impose a uniformity restriction that there can be only two rates of tax on the different commodities, a positive rate and the...

This paper examines a symmetric Nash equilibria of a two-country model of fiscal competition with a continuum of taxable commodities in each country. The innovation is to impose a uniformity restriction that there can be only two rates of tax on the different commodities, a positive rate and the...

The literature on indirect taxation is usually concerned with the casewhere the number of possible di¤erent tax rates equals the number of commodities.The purpose of this paper is to characterize, in a partial equilibrium framework,which commodities should be taxed at the same rate whenever...

This note characterizes, in a partial equilibrium economy with a single agent, which commodities should be taxed whenever there is only one available tax rate. We show that commodities with low price elasticities should be imposed; luxuries are eventually exempted.