Demographically Extended & State Specific Optimal Commodity Taxes for India

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contributor.author Seth, A. K. en_US
contributor.author Bhathnage, Ankur en_US
date.accessioned 2009-11-25T12:41:54Z en_US
date.available 2009-11-25T12:41:54Z en_US
date.issued 2006 en_US
identifier.citation Studies of Business and Economics, 2006, Vol. 12, No. 2, Pages 5-30 en_US
identifier.uri http://hdl.handle.net/10576/6868 en_US
description.abstract This paper attempts to provide conclusive evidence of regional variations in demand be¬haviour in India using the Restricted Non Linear Preference System. Also the importance of household composition is brought out clearly via its influence on optimal commodity taxes for India. This is done by recognizing each of the chosen 16 Indian states separately and esti¬mating tax rates for them, while incorporating demographic variables. The results show con¬siderable variations in not only the estimated tax rates, but also in the demand behaviour as revealed by response of tax rates to changes in revenue requirements and changes in a social planner's aversion to inequality. In other words, the estimated tax rates are extremely sensi¬tive to the degree of aversion to inequality and the required revenue; the response of each state to these changing parameters is also non uniform. Our results reveal that indirect taxes are ineffective in redistributing income in the majority of the states under consideration. en_US
language.iso en en_US
publisher Qatar University en_US
subject Demographics & Optimal Comodity en_US
title Demographically Extended & State Specific Optimal Commodity Taxes for India en_US
type Article en_US
identifier.pagination 5-30 en_US
identifier.issue 2 en_US
identifier.volume 12 en_US


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