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The Measurement of Inflation and Welfare after Tax Reform

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Author Info

  • Diewert, W.E.
  • Fax, K.J.

Abstract

Statistical agencies are faced with a difficult measurement problem when tax reforms change consumer prices. Such reforms can affect measures of inflation and hence measures of welfare. It is suggested that instead of attempting to adjust the consumer price index (CPI) afetr tax reform, it is better to measure changes in after tax income.

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Bibliographic Info

Paper provided by New South Wales - School of Economics in its series Papers with number 96/32.

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Length: 22 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:nesowa:96/32

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Postal: THE UNIVERSITY OF NEW SOUTH WALES, SCHOOL OF ECONOMICS, P.O.B. 1 KENSINGTON, NEW SOUTH WALES 2033 AUSTRALIA.
Phone: (+61)-2-9385-3380
Fax: +61)-2- 9313- 6337
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Web page: http://www.economics.unsw.edu.au/
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Keywords: TAX POLICY; ECONOMIC REFORM; INFLATION;

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