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Produced Inputs and Tax Incidence Theory


  • Steedman, Ian


In the widely used 2 x 2 general-equilibrium analysis of tax incidence the treatment of "capital" is often obscure: when it is clarified, many familiar results from that an analysis are found to be invalid. With land, labor, produced inputs, and a zero rate of interest, factor-tax results hold good but excise-tax results do not; with a positive rate of interest, no useful incidence results are available. In a model with a given labor supply and a given total value of capital, the standard incidence theorems are again invalid.

Suggested Citation

  • Steedman, Ian, 1986. "Produced Inputs and Tax Incidence Theory," Public Finance = Finances publiques, , vol. 41(3), pages 331-349.
  • Handle: RePEc:pfi:pubfin:v:41:y:1986:i:3:p:331-49

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