Harvard Law School; National Bureau of Economic Research (NBER)
Harvard Law and Economics Discussion Paper No. 542
HANDBOOK OF LAW AND ECONOMICS, Polinksy, Shavell, eds., Elsevier, Forthcoming
This Handbook entry presents a conceptual, normative overview of the subject oftaxation. It emphasizes the relationships among the main functions of taxation - notably, raisingrevenue, redistributing income, and correcting externalities - and the mapping between thesefunctions and various forms of taxation. Different types of taxation as well as expenditures ontransfers and public goods are each integrated into a common optimal tax framework with theincome tax and commodity taxes at the core. Additional topics addressed include a range ofdynamic issues, the unit of taxation, tax administration and enforcement, and tax equity.
Number of Pages in PDF File: 118
JEL Classification: H00, H20, H21, H23, H24, H26,H41, H43, H53, H55
Date posted: July 31, 2006