1927 paper "A Contribution to the Theory of Taxation"

E381629

The 1927 paper "A Contribution to the Theory of Taxation" is Frank P. Ramsey’s foundational work in public economics that introduced the optimal taxation framework now known as Ramsey pricing.

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Predicate Object
instanceOf academic paper
economics paper
aimsTo minimize welfare loss from raising a given revenue
author Frank P. Ramsey
linked to: F. P. Ramsey
citedAs Ramsey (1927)
contributionTo formalization of optimal indirect taxes
foundation of Ramsey pricing in public economics
countryOfPublication United Kingdom
field optimal taxation theory
public economics
welfare economics
hasAlternativeName Ramsey 1927 paper
Ramsey’s optimal taxation paper
hasImpactOnPolicy design of commodity tax systems
regulation of natural monopolies
hasImpactOnTheory development of second-best welfare economics
hasKeyAssumption competitive markets apart from taxation
given government revenue requirement
representative consumer
historicalSignificance foundational work in public economics
one of the earliest formal treatments of optimal taxation
influencedConcept marginal cost pricing with markups
nonlinear pricing in regulated industries
second-best taxation
influencedField modern optimal tax theory
public finance
regulatory pricing
introducedConcept Ramsey pricing
Ramsey rule for optimal commodity taxation
inverse elasticity rule for taxation
language English
mainTopic efficient tax structure under revenue constraint
minimization of excess burden of taxation
optimal commodity taxation
welfare maximization subject to government budget constraint
proposes tax rates inversely related to demand elasticities
publicationYear 1927
publishedIn The Economic Journal
publisher Royal Economic Society
relatedToWork Ramsey’s work on saving and optimal growth
timePeriod 20th century economics
usesMethod Lagrange multipliers
constrained optimization

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F. P. Ramsey publication 1927 paper "A Contribution to the Theory of Taxation"
A Contribution to the Theory of Taxation introducedConcept Ramsey rule for optimal commodity taxation
linked to: 1927 paper "A Contribution to the Theory of Taxation"
A Contribution to the Theory of Taxation hasAlternativeName Ramsey’s optimal taxation paper
linked to: 1927 paper "A Contribution to the Theory of Taxation"