Economic Principles of Commodity Taxation

An overview of the design and structure of commodity taxation, providing an analysis of key theoretical and empirical research.

Vidar Christiansen (Author), Stephen Smith (Author)

9781009002028, Cambridge University Press

Paperback / softback, published 22 April 2021

75 pages
22.9 x 15.1 x 0.5 cm, 0.15 kg

The authors provide a broad overview of economic aspects of commodity taxation, focussing in particular on theory and on policy applications in OECD countries. Some major papers in public economics have discussed whether these taxes should be levied at a uniform rate, or whether different commodities should be taxed differently, for reasons of either equity or efficiency. The authors begin with this question, and then discuss further issues, including the economic incidence of commodity taxes, the properties of the VAT, the taxation of financial services, the international aspects of commodity taxation, and environmental and health policy aspects.

1. Introduction and overview
2. The optimal structure of commodity taxes
3. Commodity tax incidence
4. Economic aspects of the VAT
5. VAT and financial services
6. International aspects of indirect taxation
7. Using indirect taxes to achieve changes in behaviour
8. Some further issues
9. Directions for future research.

Subject Areas: Economic systems & structures [KCS], Political economy [KCP], Economics [KC]