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Design and Reform of Taxation Policy (Paperback, Softcover reprint of hardcover 1st ed. 1993)
Loot Price: R2,886
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Design and Reform of Taxation Policy (Paperback, Softcover reprint of hardcover 1st ed. 1993)
Series: Financial and Monetary Policy Studies, 25
Expected to ship within 10 - 15 working days
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G. Galeotti* and M. Marrelli** *Universita di Perugia **Universita
di Napoli 1. The economic analysis of optimal taxation has
permitted considerable steps to be taken towards the understanding
of a number of problems: the appropriate degree of progression, the
balance between different taxes, the equity-efficiency trade-off
etc .. Though at times considered as abstract and of little use in
policy design, the issues it addresses are real ones and very much
on the agenda of many countries. As usual in scientific debate,
criticisms have contributed to the correct understanding of the
theoretical problems involved and made clear that, at the present
state of the art, definitive conclusions may be premature. A first
well-taken criticism addresses the assumption, underlying optimal
taxation models, of a competitive economy with perfect information
on the part of individual agents and full market clearing. Once we
leave the Arrow-Debreu world, it is no longer necessarily the case
that taxes and transfers introduce distortions on otherwise
efficient allocations.
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