A Note on Taxation, Imperfect Competition and the Balanced Budget Multiplier
This paper explores the implications of the form of taxation for the size of the balanced budget multiplier in imperfectly competitive models. The authors show that the balanced budget multiplier is positive but less than unity when there is either a lump-sum or a proportional profit tax, that it is zero when taxes are proportional to total income (wage and profit income), and that it can be negative when a proportional tax is levied on wage income alone. Copyright 1992 by Royal Economic Society.
Volume (Year): 44 (1992)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:44:y:1992:i:1:p:68-74. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.