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Conditional demands and marginal tax reform

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  • David (David Patrick) Madden

Abstract

This paper examines Irish demand patterns using conditional demand functions. This overcomes the problems faced by traditional demand analysis which neglects the influence of labour supply and thus assumes weak separability. The conditional approach allows for more exact tests of weak separability using more flexible functional forms than is possible when estimating an unconditional commodity demand–labour supply model. The impact of the conditioned demand responses and the relaxation of weak separability on measures of marginal tax reform is examined.

Suggested Citation

  • David (David Patrick) Madden, 1993. "Conditional demands and marginal tax reform," Working Papers 199329, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:199329
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    File URL: http://hdl.handle.net/10197/1741
    File Function: First version, 1993
    Download Restriction: no
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