On Calculating Welfare Losses of Taxation and Public Provision on the margin and to a degree

Ilpo Suoniemi

No 108, Discussion Papers from VATT Institute for Economic Research

Abstract: In the paper an index number measuring inefficiency of taxation is introduced which is based on an economy-wide generalisation of the input distance function. Related concepts are an input based quantity index, the index of real endowment, and a productivity index indicating effectiveness of the public sector and the society's welfare index which offer a convenient summary way of analyzing the extent and nature of government intervention from the perspective of welfare and standard-of-living in the society. These indices should have wide applicability since they are based on a reinterpretation of similar concepts used in production theory. Hedonic scales seem particularly promising in offering a practical way of measuring the extent of intervention through the change in the marginal rates of substitution of the private goods.

Keywords: Welfare loss of taxation, Malmquist indices, Hedonic scales., Economic growth, Taloudellinen kasvu, Macroeconomic policy, Talouspolitiikka, Taxation, Verotus, Taxation and Social Transfers, Julkisen talouden rahoitus ja tulonsiirrot, C100 - Econometric and Statistical Methods: General, D600 - Welfare Economics: General, E620 - Macroeconomic Aspects of Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation, H200 - Taxation, Subsidies, and Revenue: General, O100 - Economic Development: General, (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.doria.fi/handle/10024/148097

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:fer:dpaper:108

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Papers from VATT Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Anita Niskanen ().