IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/v95y1987i4p775-96.html
   My bibliography  Save this article

The Impact of Direct Taxes on the Cost of Living

Author

Listed:
  • Gillingham, Robert
  • Greenlees, John S

Abstract

In this paper, the authors define a cost-of-living index including direct taxes. They show its relationship to the traditional index and demonstrate how nonconsumption costs are properly treated. They t hen define a fixed-weight approximation, a tax and price index (TPI). Using federal, state, local, and social security tax rates for 1967- 85, the authors construct annual TPI series based on household data. They find that inclusion of direct taxes has sizable impacts on the e stimated rate of inflation. Partitioning their household sample, they find that recognition of taxes significantly alters inflation rate d ifferentials estimated using consumption prices alone. Copyright 1987 by University of Chicago Press.

Suggested Citation

  • Gillingham, Robert & Greenlees, John S, 1987. "The Impact of Direct Taxes on the Cost of Living," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 775-796, August.
    • Handle: RePEc:ucp:jpolec:v:95:y:1987:i:4:p:775-96
    DOI: 10.1086/261485
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/261485
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.
    File URL: https://libkey.io/10.1086/261485?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klevmarken, N. Anders, 1998. "Preference-based indices with subsidized commodities and income-dependent prices," Economics Letters, Elsevier, vol. 59(1), pages 31-38, April.
    2. Matthew D. Shapiro & David W. Wilcox, 1996. "Mismeasurement in the Consumer Price Index: An Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 93-154, National Bureau of Economic Research, Inc.
    3. Louis Kaplow, 1995. "Regional Cost-of-Living Adjustments in Tax-Transfer Schemes," NBER Working Papers 5008, National Bureau of Economic Research, Inc.
    4. Steven A. Cobb, 1991. "Substitution Bias and Cost of Living Variability for U.S. Demographic Groups:," American Journal of Economics and Sociology, Wiley Blackwell, vol. 50(1), pages 85-97, January.
    5. Robert McClelland & Mary F. Kokoski, 1994. "Econometric Issues in the Analysis of Charitable Giving," Public Finance Review, , vol. 22(4), pages 498-517, October.
    6. Ralph Bradley & Steven Holden & Robert Mcclelland, 2005. "A Robust Estimation Of The Effects Of Taxation On Charitable Contributions," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 545-554, October.
    7. Latimaha, Rusli & Ismail, Nor Asmat & Bahari, Zakaria, 2020. "Cost of Living and Standard of Living Nexus: The Determinants of Cost of Living," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(3), pages 1-14.
    8. Latimaha, Rusli & Ismail, Nor Asmat, 2019. "Examining the Linkages between Street Crime and Selected State Economic Variables in Malaysia: A Panel Data Analysis," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(1), pages 59-72.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:95:y:1987:i:4:p:775-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.