Marginal and Non Marginal Commodity Tax Reforms with Rank Two and Rank Three Demographic Demand Systems
This paper provides evidence showing that the insensivity of marginal commodity tax reforms to demand specification, observed in recent studies, does not extend to the non marginal case. The size of the tax change has a sharp impact on commodity tax reforms. In constrast to priceeffects, neither household composition nor quadratic Engel curves alters significantly the direction of tax change.
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|Date of creation:||1997|
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