Influence of Taxation Within a Group of Goods and Services with Diverse Demand Elasticity

Bradut-Vasile Bolos
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Bradut-Vasile Bolos: Universitatea "Petru Maior" din Tirgu-Mures, Str. Nicolae Iorga nr.1, Tirgu-Mures, Mures, 540088, Romania

Acta Marisiensis. Series Oeconomica, 2014, vol. 1, 11-16

Abstract: This article proposes an extension of the influence of consumption taxation to demand by including the competition between products for the same available income. The assumption is that inelastic demand goods and services will obtain a larger share from available income than elastic demand ones. That raises the possibility that even consumption taxation that is focused on inelastic demand markets may indirectly influence unrelated elastic demand markets.

Keywords: market elasticity; consumption taxation; government policy (search for similar items in EconPapers)
JEL-codes: D4 E25 E62 H32 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pmu:oecono:v:1:y:2014:p:11-16

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