CHAPTER 16 Efficient and Equitable Taxation Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
EFFICIENT AND EQUITABLE TAXATION Chapter 16. Optimal Commodity Taxation w(T – l) = P X X + P Y Y wT = P X X + P Y Y + wl wT = (1 + t)PX X + (1 + t)PY.