Integrating Tax Distortions and Externality Theory Journal Article

Overview

abstract

• Tax distortions are interpreted as fiscal externalities. By purchasing a taxed commodity, the individual generates tax revenue that is a benefit external to the purchaser. Behaving noncooperatively, the individual chooses a quantity that is less than the efficient level. The excess burden is interpreted as the benefit of choosing quantities cooperatively. The analysis clarifies the difference between the marginal cost of funds and the marginal excess burden, and explains the presence of compensated demands in the Harberger Triangle, in the Index of Discouragement, and in the Ramsey Equations.

CU Boulder Authors

• de Bartolome, Charles A M

publication date

• July 1, 1999

has restriction

• closed

Date in CU Experts

• June 30, 2014 2:35 AM

Full Author List

• De Bartolome CAM

author count

• 1

published in

• Journal of Public Economic Theory  Journal

Other Profiles

International Standard Serial Number (ISSN)

• 1097-3923

Electronic International Standard Serial Number (EISSN)

• 1467-9779

Digital Object Identifier (DOI)

• https://doi.org/10.1111/1097-3923.00015

Additional Document Info

start page

• 339

end page

• 358

volume

• 1

issue

• 3