Gauthier, S;
Laroque, G;
(2019)
Production efficiency and profit taxation.
Social Choice and Welfare
, 52
(2)
pp. 215-223.
10.1007/s00355-018-1144-2.
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Abstract
Consider a simple general equilibrium economy with one representative consumer, a single competitive firm and the government. Suppose that the government has to finance public expenditures using linear consumption taxes and/or a lump-sum tax on profits redistributed to the consumer. We show that, if the tax rate on profits cannot exceed 100% , one cannot improve upon the second-best optimum of an economy with constant returns to scale by using a less efficient profit-generating decreasing returns to scale technology.
| Type: | Article |
|---|---|
| Title: | Production efficiency and profit taxation |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s00355-018-1144-2 |
| Publisher version: | https://doi.org/10.1007/s00355-018-1144-2 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10053297 |
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