The Empirical Analysis of Tax Reforms / Mervyn A. King.

Format:

Book

Author/Creator:

King, Mervyn A.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1996.

NBER working paper series no. w1996

Language:

English

Subjects (All):

Taxation--Research.

Taxation.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Cambridge, Massachusetts : National Bureau of Economic Research, 1986.

Summary:

Over the last decade increasing use has been made of individual household

data to analyse the gains and losses from tax reform. Much attention has

been paid to the econometric estimation of models of household responses to

taxes. But these models yield valid estimates of the welfare consequences

of tax changes only when the implied preference orderings are well behaved.

This paper discusses the nature of such conditions in detail. Where there

are rionlinearities in the budget constraint then two sets of "primal" and

"dual" conditions must be satisfied. The analysis of these conditions

yields suggestions for the specification of behavioural models and the use

of individual-specific information in the observed data.

Notes:

Print version record

August 1986.