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Publications [#345567] of Steven G. Medema

Journal Articles

  1. Formby, JP; Medema, SG; Smith, WJ, Tax neutrality and social welfare in a comptutational general equilibrium framework, Public Finance Review, vol. 23 no. 4 (January, 1995), pp. 419-447 [doi]
    (last updated on 2021/06/23)

    Abstract:
    This article investigates the effects of distributionally neutral tax changes on equity and efficiency using computational general equilibrium and stochastic dominance techniques. The authors find, for a tax increase, that the constant-tax-share definition is preferred both in terms of efficiency and equity for a wide range of values of the elasticity of labor supply. For a tax decrease, the constant-after-tax-income definition dominates. For low elasticities of labor supply, no general welfare conclusions can be drawn, but under reasonable assumptions the constant-tax-share definition would be approved by a risk-averse median voter. © 1995, Sage Publications. All rights reserved.


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