Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Production Efficiency and Profit Taxation

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. This note shows that, if the tax rate on profits cannot exceed 100 percent, 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.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [14 references]  Display  Hide  Download
Contributor : Caroline Bauer Connect in order to contact the contributor
Submitted on : Tuesday, October 24, 2017 - 12:39:00 PM
Last modification on : Friday, April 29, 2022 - 10:13:20 AM
Long-term archiving on: : Thursday, January 25, 2018 - 12:34:58 PM


Files produced by the author(s)


  • HAL Id : halshs-01622337, version 1


Stéphane Gauthier, Guy Laroque. Production Efficiency and Profit Taxation. 2017. ⟨halshs-01622337⟩



Record views


Files downloads