Correct and Incorrect Measures of the Deadweight Loss of Taxation

Wilfried Pauwels

Public Finance = Finances publiques, 1986, vol. 41, issue 2, 267-76

Abstract: Deadweight loss of taxation can be measured in two ways: either as the gain that could have been realized if all taxes had been lump sum or as the loss that would remain if all tax receipts would be returned, in a lump sum way, to the consumer. These two approaches yield different loss measures. Morevoer, within each of the two approaches, two loss measures can be defined, one based on the equivalent variation and the other based on the compensating variation. It will be shown that all of the measures based on the compensating variation are unreliable.

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:41:y:1986:i:2:p:267-76

Access Statistics for this article

More articles in Public Finance = Finances publiques
Bibliographic data for series maintained by Christopher F. Baum ().