Should the Government's Allocation Branch Be Concerned About the Distortionary Cost of Taxation and Distributive Effects?

31 Pages Posted: 24 Jul 2007 Last revised: 27 Jun 2010

See all articles by Louis Kaplow

Louis Kaplow

Harvard Law School; National Bureau of Economic Research (NBER)

Date Written: December 1993

Abstract

Does taxation for public goods generally involve a distortionary cost? Are Pigouvian taxes desirable because they raise revenue without having to resort to distortionary taxes? Should decisions concerning public goods or Pigouvian taxes depend on whether their incidence is regressive? The answer to these questions may be negative, contrary to conventional wisdom, if one considers a different and arguably more natural method of achieving budget balance than is typically assumed.

Suggested Citation

Kaplow, Louis, Should the Government's Allocation Branch Be Concerned About the Distortionary Cost of Taxation and Distributive Effects? (December 1993). NBER Working Paper No. w4566. Available at SSRN: https://ssrn.com/abstract=481485

Louis Kaplow (Contact Author)

Harvard Law School ( email )

1575 Massachusetts Avenue
Cambridge, MA 02138
United States
617-495-4101 (Phone)
617-496-4880 (Fax)

HOME PAGE: http://www.law.harvard.edu/faculty/directory/facdir.php?id=32&show=bibliography

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
21
Abstract Views
555
PlumX Metrics