Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
In theory, the incidence of a tax should be independent of the side of the market on which it is levied. This principle of liability‐side equivalence underlies virtually all theories of tax incidence. Policy discussions, however, tend to place great emphasis on the legal division of tax payments. We use computerized experimental posted‐offer markets to test liability‐side equivalence. We find that market outcomes are essentially the same when the tax is levied on sellers as when it is levied on buyers. Thus, we cannot reject liability‐side equivalence.