TY  - JOUR
AU  - Aizenman,Joshua
TI  - Inflation, Tariffs and Tax Enforcement Costs
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1712
PY  - 1988
Y2  - September 1988
UR  - http://www.nber.org/papers/w1712
L1  - http://www.nber.org/papers/w1712.pdf
N1  - Author contact info:
Joshua Aizenman
Economics and SIR
USC
University Park
Los Angeles, CA 90089-0043
Tel: 213-740-4066
E-Mail: aizenman@usc.edu
AB  - This paper derives the dependency of optimal tariff and inflation tax on tax collection and enforcement costs. The analysis is done for a small, open economy. The existence of such costs can justify tariff and inflation tax policies as optimal revenue-raising devices. This paper suggests that greater government demand for revenue will increase the use of inflation and tariffs as revenue devices. The analysis derives elasticity rules that tie optimal tariff and inflation rates to the costs of tax collection.
ER  -