IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2010i6p30-60.html
   My bibliography  Save this article

Taxation in Walrasian Economy

Author

Listed:
  • Zak, F.

    (CEMI RAS, Moscow, Russia)

Abstract

We consider two models of lump sum taxation in pure exchange economy in which the state imposes taxes on (or offers financial aid to) economic agents characterized by their demand functions and initial resources. In the first model the state has its own preferences and uses the collected money to enter the market and maximize its utility while in the second model it uses the taxes to acquire fixed resources necessary for its functioning. We study the existence and structure of equilibria in general economies, the possibility of using taxation to realize Pareto optimal allocations, and the role of taxation as a possible cause of inflation. Special attention is paid to economies with gross substitutability. Bibliography 18 items.

Suggested Citation

  • Zak, F., 2010. "Taxation in Walrasian Economy," Journal of the New Economic Association, New Economic Association, issue 6, pages 30-60.
  • Handle: RePEc:nea:journl:y:2010:i:6:p:30-60
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2010-6-30-60r.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Balasko, Yves, 1979. "Budget-constrained Pareto-efficient allocations," Journal of Economic Theory, Elsevier, vol. 21(3), pages 359-379, December.
    2. N. Gregory Mankiw & Matthew Weinzierl & Danny Yagan, 2009. "Optimal Taxation in Theory and Practice," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 147-174, Fall.
    3. Debreu, Gerard, 1970. "Economies with a Finite Set of Equilibria," Econometrica, Econometric Society, vol. 38(3), pages 387-392, May.
    4. Hahn, Frank H., 1973. "On optimum taxation," Journal of Economic Theory, Elsevier, vol. 6(1), pages 96-106, February.
    5. Debreu, Gerard, 1972. "Smooth Preferences," Econometrica, Econometric Society, vol. 40(4), pages 603-615, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Lump sum taxation; equilibrium; pure exchange economy; regular economy; price adjustment;

    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

    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:nea:journl:y:2010:i:6:p:30-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Tcharykov). General contact details of provider: http://edirc.repec.org/data/nearuea.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.