Lifetime Incidence and the Distributional Burden of Excise Taxes
This implies that low-income households in one year have some chance of being higher-income households in other years, and significantly affects the estimated distributional burden of excise taxes. This paper shows that household expenditures on gasoline, alcohol, and tobacco as a share of total consumption (a proxy for lifetime income) are much more equally distributed than expenditures as a share of annual income. From a longer-horizon perspective, excise taxes on these goods are therefore much less regressive than standard analyses suggest.
|Date of creation:||Jan 1989|
|Date of revision:|
|Publication status:||published as The American Economic Review, Vol. 79, No. 2, pp. 325-330, (May 1989).|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Driffill, E John & Rosen, Harvey S, 1983.
"Taxation and Excess Burden: A Life Cycle Perspective,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 671-83, October.
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