The Empirical Analysis of Tax Reforms

Mervyn A. King

No 1996, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Over the last decade increasing use has been made of individual household data to analyse the gains and losses from tax reform. Much attention has been paid to the econometric estimation of models of household responses to taxes. But these models yield valid estimates of the welfare consequences of tax changes only when the implied preference orderings are well behaved. This paper discusses the nature of such conditions in detail. Where there are rionlinearities in the budget constraint then two sets of "primal" and "dual" conditions must be satisfied. The analysis of these conditions yields suggestions for the specification of behavioural models and the use of individual-specific information in the observed data.

Date: 1986-08
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Advances in Econometrics, 1988, ed. T. Bewely, Cambridge University Press: London

Downloads: (external link)
http://www.nber.org/papers/w1996.pdf (application/pdf)

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:nbr:nberwo:1996

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w1996

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().