01537cas a2200241 a 4500 AALejournalIMF007956 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844573 1018-5941 BD-DhAAL BD-DhAAL Mihaljek, Dubravko. Tariffs, Optimal Taxes, and Collection Costs / Dubravko Mihaljek. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies an optimal tax problem for a small open economy where collecting taxes is costly. It is shown that, in the presence of collection costs modeled as an increasing function of the tax rate: (a) the standard rules of optimal commodity taxation (the Ramsey, the inverse elasticity, the Corlett-Hague rules) may no longer be valid; (b) tariffs may replace domestic taxes as a second-best revenue-raising device; and (c) the optimal tariff/tax structure may be uniform rather than differentiated. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/028 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/028/001.1992.issue-028-en.xml IMF e-Library