Optimal Commodity Taxation:

In the basic framework of optimal commodity taxation, the government seeks to raise a given amount of resources with the levy of only commodity (including both goods and factors) taxes. The objective of the government is to find out, what set of commodity taxes would minimise the efficiency cost of the tax burden to raise a required amount of revenue. The simplest version of the Ramsey  model is a static model (i.e., one period model without saving) with a representative consumer.