A Note on Dynamic Tax Incidence

S-Tier
Journal: Quarterly Journal of Economics
Year: 1981
Volume: 96
Issue: 4
Pages: 705-723

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Under certain reasonable conditions for a growth model, the path of adjustment between steady states generated by a change in an exogenous policy variable is solved for explicitly. The overall welfare effect is then shown to be a weighted average of the short- and long-run effects for a large class of social welfare functions. These results are applied to a simple neoclassical growth model for the purpose of investigating the dynamic incidence of a labor income tax. Contrary to the claims of previous investigators, the long-run effect is shown to be more important for a wide range of parameter values.

Technical Details

RePEc Handle
repec:oup:qjecon:v:96:y:1981:i:4:p:705-723.
Journal Field
General
Author Count
1
Added to Database
2026-01-24