This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Islam, M. Q. Search for Related Content Social Bookmarking                         What's this?

Tax Incidence With Variable Labor Supply

Saint Louis University

Using a dynamic optimization model in which the rate of time preference is endogenously determined by a household's aggregate utility, it is demonstrated that variability in labor supply has a significant effect on the long-run incidence of a capital income tax. It is demonstrated that if there is a marginal increase in the capital income tax rate, the tax burden is shared in some proportion by both capital and labor, with capital's share of the tax burden increasing with increasing elasticity of labor supply. This is in contrast with earlier results that showed that the elasticity of labor supply has no effect on the long-run incidence of a factor tax.

Public Finance Review, Vol. 21, No. 3, 322-333 (1993)
DOI: 10.1177/109114219302100305


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?