Optimal Taxation

 

Lecture Notes

1. Ramsey's Rules for Optimal Commodity Taxation
2. Optimal Commodity Taxation : Extensions
3. Optimal Income Taxation

Optional Material : Using the Expenditure Function

(repeated from section #3)

• Excess Burden and Optimal Commodity Taxation Using the Expenditure Function
• Solving the Consumer's Expenditure Minimization Problem : Details
• The Equivalent Variation using the Expenditure Function
• Shephard's Lemma