Short Run and Long Run in the Theory of Tax Incidence

Kul Bhatia ()

Public Finance = Finances publiques, 1989, vol. 44, issue 3, 343-60

Abstract: Many definitions of short run and long run, ranging from zero elasticities of substitution and demand to unchanged factor prices, exist in the tax-incidence literature. This paper emphasizes the Marshallian approach incorporating specific and mobile factors. In the short run, labor is mobile, but capital is sector-specific. In the long run, capital becomes quasi-fixed and then perfectly mobile. Problems inherent in other specifications are illustrated by taxing one good in a two-sector general equilibrium model with endogenous demand. Several results on tax-incidence in the short run and the long run are also derived.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (4)

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:44:y:1989:i:3:p:343-60

Access Statistics for this article

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