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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Paper provided by New South Wales - School of Economics in its series Papers with number
96/32.
Length: 22 pages Date of creation: 1996 Date of revision: Handle: RePEc:fth:nesowa:96/32
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Find related papers by JEL classification: D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection D60 - Microeconomics - - Welfare Economics - - - General H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General