Differential Tax Incidence: Large versus Small Tax Changes

Krauss, Melvyn B.

doi:10.1086/259874

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Specification Of the Theoretical Model1

(5)1

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1974

1991

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Article7

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Cited by 9 publications

(2 citation statements)

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“…It should be noted that the estimation procedures here, like those of Harberger (1966), Boskin (1975, and Shoven (1976), amongothers, fix only the initial values for the amounts and shares of labor and capital in the three 9. See Krauss (1972), McLure (1975), and Vanderdorpe and Friedlaender (1976) for further discussion of "large" versus "small" tax changes.…”

Section: Specification Of the Theoretical Modelmentioning

confidence: 99%

The Welfare Cost of the Underground Economy

Alm

1985

Economic Inquiry

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This paper estimates the welfare cost of taxes that create an incentive for resources to flow to the underground, or untaxed, sector in the United States. Using a general equilibrium model of the American economy, the welfare cost is found to be large and growing in absolute and relative terms over time. In 1980 the welfare cost may be as much as $220 billion, or over 9 percent of output; even conservative estimates place the loss at nearly $100 billion. It also is found that small reductions in tax rates substantially reduce the welfare cost.

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Section: Specification Of the Theoretical Modelmentioning

confidence: 99%

The Welfare Cost of the Underground Economy

Alm

1985

Economic Inquiry

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“…One possible definition is to simply add the two types of labour (measured in man hours) together. Another definition, which is adopted here, 'For an early discussion of the income effect due to initial taxes, see Krauss (1972).…”

Section: (5)mentioning

confidence: 99%