Tax Incidence with Three Goods and Two Primary Factors: Theory and Applications
AbstractA three-good-two-primary-factor (3x2) general equilibrium model, along with parallel numerical illustrations, is developed to analyze the incidence and welfare cost of several taxes. The approach, blending theory and computed examples, enriches some well-known tax models and provides more insights than either the text-book two-by-two treatments or purely numerical models in areas such as environmental taxation and value-added tax (vat). It is ideal for considering factor taxes in intermediate-good industries (e.g., profit- and payroll taxes in mining industries) which are widely used but not much discussed in the literature. Their incidence, generally, turns out to be very different from similar taxes in final-good industries. A stylized application incorporating zero-rating and exemptions, two key features of the vat system in many countries, further illustrates the usefulness of this framework.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by in its journal Public Finance = Finances publiques.
Volume (Year): 53 (1998)
Issue (Month): 2 ()
Contact details of provider:
Other versions of this item:
- Kul B. Bhatia, 1999. "Tax Incidence with Three Goods and Two Primary Factors: Theory and Applications," UWO Department of Economics Working Papers 9914, University of Western Ontario, Department of Economics.
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bhatia, Kul B, 1989. "Short Run and Long Run in the Theory of Tax Incidence," Public Finance = Finances publiques, , vol. 44(3), pages 343-60.
- Bhatia, Kul B, 1982. "Intermediate Goods and the Theory of Tax Incidence," Public Finance = Finances publiques, , vol. 37(3), pages 318-38.
- Berndt, Ernst R & Wood, David O, 1979. "Engineering and Econometric Interpretations of Energy-Capital Complementarity," American Economic Review, American Economic Association, vol. 69(3), pages 342-54, June.
- Myles, G.D., 1989.
"Imperfect Competition And The Taxation Of Intermediate Goods,"
The Warwick Economics Research Paper Series (TWERPS)
315, University of Warwick, Department of Economics.
- Myles, Gareth D, 1989. "Imperfect Competition and the Taxation of Intermediate Goods," Public Finance = Finances publiques, , vol. 44(1), pages 62-74.
- Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer, vol. 2(2), pages 157-183, August.
- Shome, Parthasarathi, 1981. "The General Equilibrium Theory and Concepts of Tax Incidence in the Presence of Third or More Factors," Public Finance = Finances publiques, , vol. 36(1), pages 22-38.
- Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
- David F. Burgess, 1989. "Lower World Energy Prices: Good News or Bad News?," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 487-502, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.