Taxation in General Equilibrium: An Introduction

John Creedy

Bulletin of Economic Research, 1997, vol. 49, issue 3, 177-203

Abstract: This paper provides an introduction to some aspects of the role of taxes in a static general equilibrium framework. The standard diagrammatic framework is first used, in the case of fixed factor supplies, in order to examine selective commodity and factor taxes. A simple two-sector model, with Cobb-Douglas production functions and preferences, and allowing labour supplies to be endogenous, is then constructed. Several tax policies are examined using numerical examples. Copyright 1997 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1997
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