Publication Type:

Journal Article


Economics Letters, elsevier, Volume 24, Number 3, p.273 - 277 (1987)



This paper uses a new labour-augmented demand functional form to calculate optimal commodity taxes for India. The optimal taxes, which are far from uniform, are extremely sensitive to deviation from leisure/goods separability and to variation in the wage-rate parameter.

Cite this Research Publication

Maddipati Narsimha Murty and Ray, R., “Sensitivity of optimal commodity taxes to relaxing leisure/goods separability and to the wage rate”, Economics Letters, vol. 24, pp. 273 - 277, 1987.