This paper provides evidence showing that the insensivity of marginal commodity tax reforms to demand specification, observed in recent studies, does not extend to the non marginal case. The size of the tax change has a sharp impact on commodity tax reforms. In constrast to priceeffects, neither household composition nor quadratic Engel curves alters significantly the direction of tax change.
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Paper provided by Tasmania - Department of Economics in its series Papers with number
1997-02.
Find related papers by JEL classification: B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Quantitative and Mathematical D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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