The substantial bias from ignoring general equilibrium effects in estimating excess burden, and a practical solution

Journal of Political Economy

Volumn 111, Issue 4, 2003, Pages 898-927

  Goulder, Lawrence H ^a   Williams III, Robertson C ^b  

^a STANFORD UNIVERSITY   (United States)

^b UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

COMMODITY MARKET; LABOR MARKET; TAX SYSTEM; THEORETICAL STUDY;

EID: 0141890825     PISSN: 00223808     EISSN: None     Source Type: Journal    
DOI: 10.1086/375378     Document Type: Article

References (33)

1. Antos, Joseph. The Proposed Tobacco Settlement: Issues from a Federal Perspective. Washington: Congressional Budget Off., 1998.
2. Atkinson Anthony B., and Stiglitz, Joseph E. "The Structure of Indirect Taxation and Economic Efficiency." J. Public Econ. 1 (April 1972): 97-119.
3. Ballard, Charles L. "How Many Hours Are in a Simulated Day? The Effects of Time Endowment on the Results in Tax-Policy Simulation Models." Manuscript. East Lansing: Michigan State Univ., Dept. Econ., October 1999.
4. Bovenberg, A. Lans, and de Mooij, Ruud A. "Environmental Levies and Distortionary Taxation." A.E.R. 84 (September 1994): 1085-89.
5. Browning, Edgar K. "On the Marginal Welfare Cost of Taxation." A.E.R. 77 (March 1987): 11-23.
6. Corlett, Wilfred J., and Hague, Douglas C. "Complementarity and the Excess Burden of Taxation. Rev. Econ. Studies 21, no. 1 (1953): 21-30.
7. de Mooij, Ruud A., and Bovenberg, A. Lans. "Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting." Internat. Tax and Public Finance 5 (February 1998): 7-39.
8. Diamond, Peter A., and Mirrlees, James A. "Optimal Taxation and Public Production" (2 pts.). A.E.R. 61 (March 1971): 8-27; (June 1971): 261-78.
9. Farrell, Lisa, and Walker, Ian. "The Welfare Effects of Lotto: Evidence from the UK." J. Public Econ. 72 (April 1999): 99-120.
10. Feldstein, Martin. "The Welfare Cost of Capital Income Taxation." J.P.E. 86, no. 2, pt. 2 (April 1978): S29-S51.
11. Fershtman, Chaim; Gandal, Neil; and Markovich, Sarit. "Estimating the Effect of Tax Reform in Differentiated Product Oligopolistic Markets." J. Public Econ. 74 (November 1999): 151-70.
12. Fuchs, Victor R.; Krueger, Alan B.; and Poterba, James M. "Economists' Views about Parameters, Values, and Policies: Survey Results in Labor and Public Economics." J. Econ. Literature 36 (September 1998): 1387-1425.
13. Goulder, Lawrence H.; Parry, Ian W. H.; and Burtraw, Dallas. "Revenue-Raising versus Other Approaches to Environmental Protection: The Critical Significance of Preexisting Tax Distortions." Rand J. Econ. 28 (Winter 1997): 708-31.
14. Goulder, Lawrence H., and Williams, Roberton C., III. "The Usual Excess-Burden Approximation Usually Doesn't Come Close." Working Paper no. 7034. Cambridge, Mass.: NBER, March 1999.
15. Harberger, Arnold C. "The Measurement of Waste." A.E.R. Papers and Proc. 54 (May 1964); 58-76. (a)
16. Harberger, Arnold C. "Taxation, Resource Allocation, and Welfare." In The Role of Direct and Indirect Taxes in the Federal Revenue System. Princeton, N.J.: Princeton Univ. Press (for NBER), 1964. (b)
17. Hausman, Jerry. "Taxation by Telecommunications Regulation." Working Paper no. 6260. Cambridge, Mass.: NBER, November 1997.
18. Hausman, Jerry. "Efficiency Effects on the U.S. Economy from Wireless Taxation." Working Paper no. 7281. Cambridge, Mass.: NBER, August 1999.
19. Hicks, John R. Value and Capital: An Inquiry into Same Fundamental Principles of Economic Theory. 2d ed. Oxford: Clarendon, 1946.
20. Hines, James R., Jr. "Three Sides of Harberger Triangles." J. Econ. Perspectives 13 (Spring 1999): 167-88.
21. Hotelling, Harold. "The General Welfare in Relation to Problems of Taxation and of Railway and Utility Rates." Econometrica 6 (July 1938): 242-69.
22. Jorgenson, Dale W., and Wilcoxen, Peter J. "Environmental Regulation and U.S. Economic Growth." Rand J. Econ. 21 (Summer 1990 : 314-40.
23. Koning, Ruud H., and Ridder, Geert. "Rent Assistance and Housing Demand." J. Public Econ. 66 (October 1997): 1-31.
24. Lipsey, Richard G., and Lancaster, Kelvin. "The General Theory of Second Best." Rev. Econ. Studies 24, no. 1 (1956): 11-32.
25. Lucas, Robert E., Jr. "Supply-Side Economics: An Analytical Review." Oxford Econ. Papers 42 (April 1990): 293-316.
26. Meade, James E. The Theory of International Economic Policy. Vol. 2. Trade and Welfare. London: Oxford Univ. Press (for Royal Inst. Internat. Affairs), 1955.
27. Parry, Ian W. H. "Pollution Taxes and Revenue Recycling." J. Environmental Econ. and Management 29, no. 3, pt. 2 (November 1995): S64-S77.
28. Parry, Ian W. H.; Williams, Roberton C., III; and Goulder, Lawrence H. "When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets." J. Environmental Econ. and Management 37 (January 1999): 52-84.
29. Poterba, James M. "Taxation and Housing: Old Questions, New Answers." A.E.R. Papers and Proc. 82 (May 1992): 237-42.
30. Ramsey, Frank P. "A Contribution to the Theory of Taxation." Econ. J. 37 (March 1927): 47-61.
31. Russek, F. S. "Labor Supply and Taxes." Staff memorandum. Washington: Congressional Budget Off., 1996.
32. Viner, Jacob. The Customs Union Issue. New York: Carnegie Endowment Internat. Peace, 1950.
33. Williams, Roberton C., III. "Revisiting the Cost of Protectionism: The Role of Tax Distortions in the Labor Market." J. Internat. Econ. 47 (April 1999): 429-47.