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Welfare Dominance: An Application to Commodity Taxation

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  • Shlomo Yitzhaki
  • Joel Slemrod

Abstract

In this paper, we suggest a method which enables the user to identify commodities that all individuals who can agree on certain weak assumptions with regard to the social welfare function will agree upon as worth subsidizing or taxing in the absence of efficiency considerations. The method is based on an extension of the stochastic dominance criteria and is illustrated using data from Israel.

Suggested Citation

  • Shlomo Yitzhaki & Joel Slemrod, 1987. "Welfare Dominance: An Application to Commodity Taxation," NBER Working Papers 2451, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:2451
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