ABSTRACT
In Part I of this paper w hich appeared in the M arch 1971 issue of this Review , w e set ou t the problem of using taxation and governm ent production to m axim ize a social welfare function. W e derived the first-order conditions, and considered the argum ent for efficiency in aggregate pro duction. H ere in Part II we consider the structure of optim al taxes in m ore detail. P art I contained five sections, and Part II begins a t Section VI. In the sixth and seventh sections we consider com m odity taxation in one-and m any-consum er econ om ies. In the eighth section we consider other kinds of taxes; and in the ninth, pub lic consum ption. In the ten th section we consider a rigorous treatm ent of the prob lem , giving a sufficient condition for the valid ity of the first-order conditions. T o begin, we shall restate the notation and basic problem .
