REGULATION AND THE THEORY OF TAX INCIDENCE

Authors
BATRA R BELADI H
Citation
R. Batra et H. Beladi, REGULATION AND THE THEORY OF TAX INCIDENCE, Public finance, 48(3), 1993, pp. 329-349
Citations number
11
Categorie Soggetti
Economics,"Public Administration","Business Finance
Journal title
Public finance → ACNP
ISSN journal
00333476
Volume
48
Issue
3
Year of publication
1993
Pages
329 - 349
Database
ISI
SICI code
0033-3476(1993)48:3<329:RATTOT>2.0.ZU;2-C
Abstract
This paper addresses the general equilibrium incidence of various taxe s in a Harberger-type two sector model in which one of the sectors is subject to so-called ''fair rate of return'' regulation. It is demonst rated that the presence of a significant regulated sector alters many of the results of the Harberger model. For example, general sales taxe s now alter the composition of output, the allocation of inputs to the two sectors, and relative input prices.