IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v36y2005i4p369-378.html
   My bibliography  Save this article

A Graphical Exposition of the Link between Two Representations of the Excess Burden of Taxation

Author

Listed:
  • Liqun Liu
  • Andrew J. Rettenmaier

Abstract

The excess burden of taxation typically has two graphical representations in undergraduate microeconomics and public finance textbooks: the IC/BC (indifference curve/budget constraint) representation and the demand/supply representation. The IC/BC representation has the advantage of showing the behavioral response to a distortionary tax and how a substitution effect alone contributes to the excess burden, whereas the demand/supply representation, also known as the Harberger Triangle, has the advantage of being easily estimated using observable variables. The authors provide a link between the two excess burden representations by illustrating how the Harberger Triangle in the demand/supply framework corresponds to the line segment that represents the excess burden in the IC/BC framework.

Suggested Citation

  • Liqun Liu & Andrew J. Rettenmaier, 2005. "A Graphical Exposition of the Link between Two Representations of the Excess Burden of Taxation," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(4), pages 369-378, October.
  • Handle: RePEc:taf:jeduce:v:36:y:2005:i:4:p:369-378
    DOI: 10.3200/JECE.36.4.369-378
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3200/JECE.36.4.369-378
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:jeduce:v:36:y:2005:i:4:p:369-378. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/VECE20 .

    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.