542. Louis Kaplow, Taxation, 2/2006. subsequently published in Handbook of Law and Economics, Vol. 1, (A Mitchell Polinsky & Steven Shavell, eds.), Elsevier B.V., 2007, 647-755.
Abstract : This Handbook entry presents a conceptual, normative overview of the subject of taxation. It emphasizes the relationships among the main functions of taxation – notably, raising revenue, redistributing income, and correcting externalities – and the mapping between these functions and various forms of taxation. Different types of taxation as well as expenditures on transfers and public goods are each integrated into a common optimal tax framework with the income tax and commodity taxes at the core. Additional topics addressed include a range of dynamic issues, the unit of taxation, tax administration and enforcement, and tax equity.