Welfare Dominance: An Application to Commodity Taxation

Shlomo Yitzhaki and Joel Slemrod

American Economic Review, 1991, vol. 81, issue 3, 480-96

Abstract: In this paper, the authors propose a method to identify commodity-tax changes that will be favored by all individuals who can agree on certain weak assumptions with regard to the social-welfare function. The method is based on an extension of the criterion of second-degree stochastic dominance and is illustrated using data from Israel. Copyright 1991 by American Economic Association.

Date: 1991
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Working Paper: Welfare Dominance: An Application to Commodity Taxation (1987)
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