A Simple and Efficient Method of Calculating the Impact of Finite Tax Changes in a Two-Sector Model.

The purpose of this note is to demonstrate a relatively simple means of calculating the impact of a finite tax change on the variables in a two-sector model. The technique can be used to examine factor taxes, excise taxes, or similar price distortions. The analysis involved requires no more than the...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 44; no. 3; pp. 629 - 635
Autor principal: Ballentine, J. Gregory
Formato: Artículo
Publicado: Wiley-Blackwell Jan78
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au: Ballentine, J. Gregory
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        Taxation
        Prices
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          Taxation
          Prices
      ab: The purpose of this note is to demonstrate a relatively simple means of calculating the impact of a finite tax change on the variables in a two-sector model. The technique can be used to examine factor taxes, excise taxes, or similar price distortions. The analysis involved requires no more than the use of fairly simple algebra (certainly no more complex than that involved in solving the differentiated equations of Harberger's model) and the use of any one of a large number of "canned" computer programs to solve for the root of a real function.
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