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Economics

Selected Works

Don Fullerton

2002

Articles 1 - 4 of 4

Full-Text Articles in Social and Behavioral Sciences

Cap And Trade Policies In The Presence Of Monopoly And Distortionary Taxation, Don Fullerton, Gilbert E. Metcalf Oct 2002

Cap And Trade Policies In The Presence Of Monopoly And Distortionary Taxation, Don Fullerton, Gilbert E. Metcalf

Don Fullerton

We extend an analytical general equilibrium model of environmental policy with pre-existing labor tax distortions to include pre-existing monopoly power as well. We show that the existence of monopoly power has two offsetting effects on welfare. First, the environmental policy reduces monopoly profits, and the negative effect on income increases labor supply in a way that partially offsets the pre-existing labor supply distortion. Second, environmental policy raises prices, so interaction with the pre-existing monopoly distortion further exacerbates the labor supply distortion. This second effect is larger, for reasonable parameter values, so the existence of monopoly reduces the welfare gain (or …

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The Economics Of Household Garbage And Recycling Behavior, Don Fullerton, Thomas Kinnaman Dec 2001

The Economics Of Household Garbage And Recycling Behavior, Don Fullerton, Thomas Kinnaman

Don Fullerton

This book collects ten previously published papers by Don Fullerton, or Thomas Kinnaman, or both together. These papers include a theory of optimal pricing per bag of garbage when recycling and dumping are available options, empirical work using a cross section of cities that charge different prices, and empirical work using a cross section of households at the start of a price per bag of garbage at the curb.

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Can Taxes On Cars And On Gasoline Mimic An Unavailable Tax On Emissions, Don Fullerton, Sarah E. West Dec 2001

Can Taxes On Cars And On Gasoline Mimic An Unavailable Tax On Emissions, Don Fullerton, Sarah E. West

Don Fullerton

An emissions tax is efficient, but measurement of every car’s emissions would be inaccurate and expensive. With identical consumers, we demonstrate the same efficiency for: an emissions tax; a gas tax that depends on fuel type, engine size, and pollution control equipment (PCE); a vehicle tax that depends on mileage; or a combination of uniform tax rates on gasoline and engine size with a subsidy to PCE. With heterogeneous consumers, efficiency can be obtained by a vehicle-specific gas tax or mileage-specific vehicle tax, but not by flat rates. We characterize second-best uniform tax rates on gasoline and on car characteristics.

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Tax Incidence, Don Fullerton, Gilbert E. Metcalf Dec 2001

Tax Incidence, Don Fullerton, Gilbert E. Metcalf

Don Fullerton

This chapter reviews the concepts, methods, and results of studies that analyze the incidence of taxes. The purpose of such studies is to determine how the burden of a particular tax is allocated among consumers through higher product prices, workers through a lower wage rate, or other factors of production through lower rates of return to those factors. The methods might involve simple partial equilibrium models, analytical general equilibrium models, or computable general equilibrium models. We review partial equilibrium models, where the burden of a tax is shown to depend on the elasticity of supply relative to the elasticity of …

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