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The Importance of Asymmetric Tax Policy and Dangers of Aggregation

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  • KENNETH L. JUDD

Abstract

Existing tax policies have many complex features that make distinctions across goods, factors, and financial structures that distort economic allocations. Their importance is ignored when tax policy is summarized by an “effective” tax rate. In fact, the losses due to asymmetries are often larger than the losses due to the level of taxation.

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  • Kenneth L. Judd, 2011. "The Importance of Asymmetric Tax Policy and Dangers of Aggregation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(s1), pages 175-205, August.
    • Handle: RePEc:wly:jmoncb:v:43:y:2011:i:s1:p:175-205
    DOI: 10.1111/j.1538-4616.2011.00414.x
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