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Full-Text Articles in Economics
The Distribution Of Tax Burdens: Introduction, Don Fullerton, Gilbert Metcalf
The Distribution Of Tax Burdens: Introduction, Don Fullerton, Gilbert Metcalf
Don Fullerton
This paper summarizes important developments in tax incidence analysis over the past forty years. We mark the date of the beginning of modern tax incidence analysis with the publication of Harberger (1962) and discuss the relation of subsequent work to this seminal paper.
Suggested Subsidies Are Sub-Optimal Unless Combined With An Output Tax, Don Fullerton, Robert D. Mohr
Suggested Subsidies Are Sub-Optimal Unless Combined With An Output Tax, Don Fullerton, Robert D. Mohr
Don Fullerton
Because of difficulties measuring pollution, many prior papers suggest a subsidy to some observable method of reducing pollution. We take three such papers as examples, and we extend each of them to show how welfare under the suggested subsidy can be increased by the addition of an output tax. While the suggested subsidy reduces damage per unit of output, it also decreases the firm's cost of production and the equilibrium break-even price. It might therefore increase output – unless combined with an output tax. While this general point has appeared in prior literature, it has been overlooked in specific applications. …
Public Finance Solutions To Vehicle Emissions Problems In California, Don Fullerton, Sarah E. West
Public Finance Solutions To Vehicle Emissions Problems In California, Don Fullerton, Sarah E. West
Don Fullerton
All urban centers in California violate the Federal standard for ozone. So far, the State has addressed vehicle emission problems with a variety of mandates. In contrast, economic theory suggests that costs of achieving air quality can be minimized by the use of incentive policies such as permits, taxes, or subsidies. The purpose of the research described in this monograph is to explore incentive programs that might be added to the State’s repertoire of effective vehicle pollution reduction policies. The monograph is not very technical in nature, but it explains our theoretical approach, numerical simulation model, and statistical estimation. We …