| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 968982 | Journal of Public Economics | 2012 | 10 Pages |
Abstract
⺠I study optimal indirect taxes when consumers use consumption to communicate their identity to others. ⺠Goods used for signaling only can be taxed without burden. ⺠A Ramsey rule characterizes optimal taxes when goods are used for both communication and intrinsic consumption. ⺠Signaling provides a new argument for differential indirect taxation. ⺠Sufficient conditions for a unique D1 equilibrium strategy profile are provided.
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Economics and Econometrics
Authors
Tom Truyts,