Marginal and Non-Marginal Commodity Tax Reforms with Rank Two and Rank Three Demographic Demand Systems
Ranjan Ray
University of Tasmania - Department of Economics
1997
University of Tasmania WP 1997-02
Abstract:
This paper provides evidence showing that the insensitivity of marginal commodity tax reforms to demand specification, observed in recent studies, does not extend to the non-marginal case. The size of the tax change has a sharp impact on commodity tax reforms. In contrast to price effects, neither household composition nor quadratic Engel curves alters significantly the direction of tax change.
JEL Classification: B23, D12, H21
working papers series
Suggested Citation
Ray, Ranjan, Marginal and Non-Marginal Commodity Tax Reforms with Rank Two and Rank Three Demographic Demand Systems (1997). University of Tasmania WP 1997-02. Available at SSRN: http://ssrn.com/abstract=49046
