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Marginal commodity tax reforms: a survey

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  • Alessandro Santoro

    (Università degli studi di Milano-Bicocca)

Abstract

We summarize the main features and results of the literature on marginal commodity tax reforms as initiated by Ahmad and Stern (1984) and developed further by Yitzhaki and Thirsk (1990). We establish new links with other fields of research, namely the literature on the use of equivalence scales and the one on poverty measurement. We also critically examine some issues associated with the implementation of marginal tax reforms, with special refernce to the estimation of welfare weights and of revenue effects.

Suggested Citation

  • Alessandro Santoro, 2005. "Marginal commodity tax reforms: a survey," Public Economics 0508017, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwppe:0508017
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    References listed on IDEAS

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    1. Yitzhaki, Shlomo & Slemrod, Joel, 1991. "Welfare Dominance: An Application to Commodity Taxation," American Economic Review, American Economic Association, vol. 81(3), pages 480-496, June.
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    3. Ray, Ranjan, 1997. " Issues in the Design and Reform of Commodity Taxes: Analytical Results and Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 11(4), pages 353-388, December.
    4. Madden, David, 1996. "Marginal Tax Reform and the Specification of Consumer Demand Systems," Oxford Economic Papers, Oxford University Press, vol. 48(4), pages 556-567, October.
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    6. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-719, September.
    7. Yitzhaki, Shlomo & Lewis, Jeffrey D, 1996. "Guidelines on Searching for a Dalton-Improving Tax Reform: An Illustration with Data from Indonesia," World Bank Economic Review, World Bank Group, vol. 10(3), pages 541-562, September.
    8. Paolo Liberati, 2003. "Poverty Reducing Reforms and Subgroup Consumption Dominance Curves," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 589-601, December.
    9. Mayeres, Inge & Proost, Stef, 2001. "Marginal tax reform, externalities and income distribution," Journal of Public Economics, Elsevier, vol. 79(2), pages 343-363, February.
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    11. Schob, Ronnie, 1996. "Evaluating Tax Reforms in the Presence of Externalities," Oxford Economic Papers, Oxford University Press, vol. 48(4), pages 537-555, October.
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    14. Mayshar, Joram & Yitzhaki, Shlomo, 1996. "Dalton-improving tax reform: When households differ in ability and needs," Journal of Public Economics, Elsevier, vol. 62(3), pages 399-412, November.
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    24. Yitzhaki, Shlomo & Thirsk, Wayne, 1988. "Welfare dominance and the design of excise taxation in Cote d'Ivoire," Policy Research Working Paper Series 75, The World Bank.
    25. Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
    26. Yitzhaki, Shlomo, 1990. "On the Effect of Subsidies to Basic Food Commodities in Egypt," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 772-792, October.
    27. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
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    Cited by:

    1. Paul Makdissi & Stéphane Mussard, 2006. "Between-Group Transfers and Poverty-Reducing Tax Reforms," Cahiers de recherche 06-23, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    2. Valentini, Edilio, 2015. "Indirect taxation, public pricing and price cap regulation: A synthesis," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-39.
    3. Odd E. Nygård & John T. Revesz, 2015. "Optimal indirect taxation and the uniformity debate: A review of theoretical results and empirical contributions," Discussion Papers 809, Statistics Norway, Research Department.
    4. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2014. "Pro-poor indirect tax reforms, with an application to Mexico," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 87-118, February.
    5. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2009. "Pro-Poor Tax reforms, with an Application to Mexico," Working Papers 0907E, University of Ottawa, Department of Economics.
    6. Saikou Amadou Diallo & Paul Makdissi, 2008. "Est-ce que les subsides d'électricité diminuent la pauvreté en Guinée ?," Working Papers 0811E, University of Ottawa, Department of Economics.
    7. Nikolaos Vlassis, 2013. "The Welfare Consequences of Pollution-Tax Harmonization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(2), pages 227-238, October.
    8. Urakawa, Kunio & Oshio, Takashi, 2010. "Comparing marginal commodity tax reforms in Japan and Korea," Journal of Asian Economics, Elsevier, vol. 21(6), pages 579-592, December.
    9. Wasiu Adekunle Are, 2012. "Poverty-Reducing Directions of Indirect Marginal Tax Reforms in Ireland," Working Papers 201230, School of Economics, University College Dublin.
    10. Essama-Nssah, B., 2008. "Assessing the redistributive effect of fiscal policy," Policy Research Working Paper Series 4592, The World Bank.
    11. Odd E. Nygard & John T. Revesz, 2016. "A literature review on optimal indirect taxation and the uniformity debate," Hacienda Pública Española, IEF, vol. 218(3), pages 107-140, September.
    12. Andrej Cupák & Peter Tóth, 2017. "Measuring the Efficiency of VAT reforms: Evidence from Slovakia," Working and Discussion Papers WP 6/2017, Research Department, National Bank of Slovakia.

    More about this item

    Keywords

    Commodity; taxation; inequality; poverty;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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