IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v29y2001i6p461-486.html
   My bibliography  Save this article

Specific Inputs, Value-Added, and Production Linkages in Tax-Incidence Theory

Author

Listed:
  • Kul B. Bhatia

    (University of Western Ontario)

Abstract

Factors of production that cannot be moved from one activity to another due to their intrinsic nature, location preferences, mobility restrictions, or licensing requirements were featured prominently in the tax literature of the 1970s. Immobile factors, however, often produce inputs for other sectors. Several examples of this type that enhance and enrich some well-known existing models are presented. The value-adding process and cross-sector connections are explicitly specified. The new tax-incidence results often resemble those in mobile-factors-only (mfo) models in spite of one or more sector-specific inputs. Numerical examples, based on stylized U.S. data, illustrate the results and highlight the difficulties that arise in defining equivalent specifications. Goods mobility offsets some effects of factor immobility, but the computed tax elasticities are rarely the same as in mfo models. The Marshallian short-run/long-run distinction, blurred somewhat by production linkages, does not disappear.

Suggested Citation

  • Kul B. Bhatia, 2001. "Specific Inputs, Value-Added, and Production Linkages in Tax-Incidence Theory," Public Finance Review, , vol. 29(6), pages 461-486, November.
  • Handle: RePEc:sae:pubfin:v:29:y:2001:i:6:p:461-486
    as

    Download full text from publisher

    File URL: http://pfr.sagepub.com/content/29/6/461.abstract
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kul B. Bhatia, 2001. "Intra-Sector Mobility and Specific Inputs in Tax-Incidence Theory," UWO Department of Economics Working Papers 20015, University of Western Ontario, Department of Economics.
    2. Anwar, Sajid & Sun, Sizhong, 2015. "Taxation of labour income and the skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 47(C), pages 18-22.

    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

    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:sae:pubfin:v:29:y:2001:i:6:p:461-486. 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: (SAGE Publications). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.