Public Finance, 2nd Edition

Taxes (continues)

preference revelation, 184±187

progressive

vertical equity, 352±353

Young's vertical equity principles,

360±361

proportional

dead-weight loss generation, 418±419

vertical equity, 352±353

Young's vertical equity principles,

359±360

public sector economics, 23±25

public sector theory, 6

realized capital gains, Auerbach's proposal,

373±378

regressive, vertical equity, 352±353

sales, Pechman±Okner studies, 589±590

U.S. commodities, distance from optimal,

472±474

wage, Auerbach±KotlikoV OLG model,

615

Young's principles of equal sacriWce,

357±359

Tax evasion, 512±519

amnesties, 519

monitoring, 515±516

penalty increase, 515

revenue-raising strategies, 516±519

standard economic model, 513±514

tax avoidance comparison, 512±513

Tax incidence

ability-to-pay principle, 336±337

annual, economy-wide, 593±595

computable general equilibrium models,

603±606

decreasing-cost services, 578±579

diVerential, see also DiVerential tax

incidence

dynamic, see also Dynamic tax incidence

economy-wide, see also Economy-wide tax

incidence

expenditure, see also Expenditure tax

incidence

Wrst-best theory, 525±526

government transfer payments, 575±578

Harberger model, 549±566

Harberger model, variable factor supplies

local property taxes, 568±569

mobile versus immobile factors, 567

overview, 566±567

taxing demand versus supply side,

567±568

intergenerational, deWnition, 606

lifetime, economy-wide tax incidence,

593±595

Lorenz±Gini, see also Lorenz±Gini tax

incidence

many-consumer economy, aggregate social

welfare perspective, 548

many-consumer economy, individual

perspective

individual dead-weight loss, 546±547

one person's dead-weight loss, 547±548

relative price change, 547

measurement methodologies, 527±528

partial equilibrium analysis, 524±525

pure

economy-wide tax incidence, 595±597

theoretical measures, 532

second-best theory, 526±527

theoretical measures

balanced-budget incidence, 532

diVerential incidence, 533±534

general principles, 530

impact equals incidence, 528

pure tax incidence, 532

relative price changes, 528±529

revenue saving, 531±532

single tax, 533

welfare changes, 529

welfare measures, 534±537

theoretical measures, diVerential, relative

price measure

change as measure of incidence,

539±540

HCV versus HEV welfare measures,

538±539

overview, 537±538

Tax loopholes, personal income taxation,

364±370

Tax progressivity, Lorenz±Gini tax incidence,

602±603

Tax

rate, marginal, optimal income taxation,

506±507

Tax reform

tax distortion, 401

tax substitution eVects on welfare loss,

439±441

Tax Reform Act of 1986

Haig±Simons income, 347±348

total and marginal dead-weight loss

estimates, 427±428

vertical equity, 361

Tax rules

production decisions with nonoptimal

taxes, 703±704

948 INDEX