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...
| Published in: | Southern Economic Journal Vol. 44; no. 3; pp. 629 - 635 |
|---|---|
| Main Author: | |
| Format: | Article |
| Published: |
Wiley-Blackwell
Jan78
|
| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| Summary: | 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. |
|---|