Investigation of Optimal Tax Rate Determination in Iran By Using Demand Elasticities Analysis Approach

Investigation of Optimal Tax Rate Determination in Iran By Using Demand Elasticities Analysis Approach

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In this study we have investigated income and price elastisities of consumption and selling of household of cities in Iran in period 1353 until 1385, by using Almost Ideal Demand System Vest and Habit Formation Linear Expenditure system.The result of study by analysis of toll aggregation current HOMEWARES trend shows that consumption and selling tax rates in Iran, determine without allocation and distributive effects of indirect taxes and also income and price elasticity.