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The Short-Period Incidence of Taxation Revisited

D Damania and D Mair

Cambridge Journal of Economics, 1992, vol. 16, issue 2, 195-206

Abstract: This paper updates and extends post-Keynesian theory of tax incidence by introducing recent theoretical developments in oligopoly theory and supergame analysis. A model of the dynamic process through which noncompetitive prices are determined over the business cycle is integrated into post-Keynesian tax incidence theory. The paper reverses many of the results of existing post-Keynesian incidence theory and concludes that this theory should be more properly viewed as a theory of the cyclical determination of the real wages. Copyright 1992 by Oxford University Press.

Date: 1992
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