Dynamic Incidence in a Two-Sector Growing Economy

M Homma
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M Homma: Department of Economics, Osaka University, Toyonaka, Osaka, Japan

Environment and Planning C, 1985, vol. 3, issue 3, 285-297

Abstract: The aim in this paper is to provide a systematic approach to the long-run incidence analysis in a two-sector growth model. For this end, a long-run incidence model as close as possible to the standard short-run incidence model shall be built, and a method of conducting the comparative dynamic analysis which evaluates the long-run factor income distribution will be developed. In so doing, the following three steps shall be taken. First, the logical structure of the long-run incidence model is carefully explored to clarify the relationship between the long-run incidence and the short-run incidence. Second, previous work is extended to cover the long-run incidence effects of other taxes such as commodity or wage taxes. Third, concrete propositions on the long-run incidence are established comparable to those on the short-run incidence.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:3:y:1985:i:3:p:285-297

DOI: 10.1068/c030285

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