The Long-Run Effect of a Tax-Rebate Program

Autor/inn/en	Wang, Yuntong; Kasper, Hirschel
Titel	The Long-Run Effect of a Tax-Rebate Program
Quelle	In: Journal of Economic Education, 38 (2007) 4, S.435-445 (11 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
Schlagwörter	Taxes; Consumer Economics; Economics Education; Microeconomics + Suchen Sie Ihr Suchwort? Abgabe; Konsumökonomie; Wirtschaftskunde; Mikroökonomie
Abstract	In each period of a dynamic tax-rebate program, a (fixed) quantity tax is imposed on each unit of a given good, and the tax revenue is rebated back to the consumer in the next period. The program lasts for infinite number of periods. The author considers a representative consumer's dynamic consumption behavior, the long-run steady-state consumption, and the consumer's welfare. Under the standard continuity and strict convexity assumptions on the consumer's preferences, he shows that the tax strictly reduces the consumption of the good in each period as well as in the steady state, and the consumer is strictly worse off. He also provides numerical analysis when the consumer has the quasilinear or the Cobb-Douglas utility functions. (Contains 4 figures and 8 notes.) (Author).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10