Instructor's Manual IMChap014

《Instructor's Manual IMChap014》由会员上传分享，免费在线阅读，更多相关内容在教育资源-天天文库。

1、Part4–AFrameworkforTaxAnalysisChapter14–TaxationandIncomeDistributionBriefOutline1.TaxIncidence:GeneralRemarksa.OnlyPeopleCanBearTaxesb.BothSourcesandUsesofIncomeShouldBeConsideredc.IncidenceDependsonHowPricesareDeterminedd.IncidenceDependsontheDispositionofTaxRevenuese.TaxProgressivenessCanBeMeasur

2、edinSeveralWays2.PartialEquilibriumModelsa.UnitTaxesonCommoditiesb.AdValoremTaxesc.TaxesonFactorsd.CommodityTaxationwithoutCompetitione.ProfitsTaxesf.TaxIncidenceandCapitalization3.GeneralEquilibriumModelsa.TaxEquivalenceRelationsb.TheHarbergerModelc.AnalysisofVariousTaxesd.SomeQualificationse.AnApp

3、liedIncidenceStudy4.Conclusions14-9Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Part4–AFrameworkforTaxAnalysisSuggestedAnswerstoEndofChapterQuestions1.ThemarketinitiallyisatP1Q1.Addingaper-customertaxonstripclubs

4、wouldbeataxonacommodity.Becausetheproducerwouldbepayingthetax,theeffectivesupplycurveforsupplierswouldbeS1.TheproducersarehappyandthemarketclearsonlywhenPSispaidbythecustomersforquantityQ2.Ofthisprice,PS-PCisthetaxpaid,wherecustomerspayPS-P1ofthetaxandthesupplierspayP1-PC.Theincidencedependsontherel

5、ativeelasticitiesofsupplyanddemand.Here,thecurvesaredrawnsuchthattheconsumersandsuppliersfaceroughlythesameincidence.However,ifonebelievedthatthesupplywasrelativelymoreinelastic,thenthestripclubswouldfaceahigherincidence.SDS1PriceBrothelTransactionsPSP1PCQ2Q12.No,itdoesnotfollowthatthetaxwillbeprogr

6、essive.Ifbothlosethesameamountofutility,therichpersonwillpaymorebecauseofdiminishingmarginalutilityofincome.But,aprogressivetaxrequiresthatahigherproportionofincome(theaveragetaxrate)betakenfromtherichperson.Thistaxplanonlyrequiresthattheabsoluteamountbehigher,nottheproportionalamount.Forinstance,if

7、themarginalutilityweredecreasing,butveryclosetoconstant,thentherichandpoorwouldpayveryclosetothesameamountintaxes.Thisamountwouldbeamuchlargershareofthepoorperson’sincome.14-9Copyright©2014McGraw-Hill