Timeline for How can consumption taxes be made progressive?
Current License: CC BY-SA 4.0
10 events
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| Mar 16, 2021 at 3:16 | comment | added | Kitsune Cavalry♦ | (Some comments have been removed. Please keep comments in the chat on topic.) | |
| Mar 12, 2021 at 15:11 | history | bounty ended | paj28 | ||
| Mar 11, 2021 at 16:59 | comment | added | 1muflon1♦ | @Papayapap 1. luxuries have empirically high elasticities, in fact in literature luxury good is often defined in terms of having high elasticity (usually higher than $|e|>1$, see discussion in Kemp 1998). 2. Price elasticity of demand changes across income. Sure person at a top 0.1% of income distribution may not care much between 2000 or 2500e but person in top 30% 20% or 15% will likely care. Even for Veblen goods where the elasticity is positive it will only be positive for people above certain incomes | |
| Mar 11, 2021 at 15:14 | comment | added | Papayapap | @1muflon1: You compare luxury good only with necessities, I think that is an unfair comparison. If we compare luxury goods in the sense of the word (and ignoring the difficulties establishing that) with other luxury goods that are not "luxurious" in the sense as most common people understand it, then I would have a strong prior that the former are more price inelastic than normal good. This is one of the reason why I like luxury brand stocks such as LVMH, they have a lot a price power. To put a blunt example, people buying Rolex watches don't really care if the watch costs 2000 or 2500 Euros.. | |
| Mar 4, 2021 at 11:05 | comment | added | paj28 | Thanks for the detailed answer, this is exactly what I was looking for and very informative. I will leave you a bounty. | |
| Mar 4, 2021 at 10:16 | history | edited | 1muflon1♦ | CC BY-SA 4.0 |
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| Mar 4, 2021 at 8:44 | history | edited | 1muflon1♦ | CC BY-SA 4.0 |
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| Mar 4, 2021 at 8:23 | vote | accept | paj28 | ||
| Mar 3, 2021 at 23:00 | history | edited | 1muflon1♦ | CC BY-SA 4.0 |
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| Mar 3, 2021 at 22:54 | history | answered | 1muflon1♦ | CC BY-SA 4.0 |