THE INCIDENCE OF A SPECIFIC, PER‐UNIT TAX: AN EMPHASIS ON THE LONG RUN
DALE S. BREMMER
(Assistant Professor of Economics, Rose‐Hulman Institute of Technology)
RANDALL G. KESSELRING
(Associate Professor of Economics, Arkansas State University)
194
Abstract
The treatment of tax incidence in most principles textbooks is incomplete and misleading. This anomaly results from treating tax incidence as a short‐run phenomenon. This paper briefly reviews the theory regarding tax incidence and surveys the leading textbooks in regard to their treatment of this issue. A strong recommendation is made that tax incidence—if covered in a principles text—be treated only in a long‐run context.
Citation
BREMMER, D.S. and KESSELRING, R.G. (1989), "THE INCIDENCE OF A SPECIFIC, PER‐UNIT TAX: AN EMPHASIS ON THE LONG RUN", Studies in Economics and Finance, Vol. 12 No. 2, pp. 84-91. https://doi.org/10.1108/eb028685
Publisher
:MCB UP Ltd
Copyright © 1989, MCB UP Limited