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The Ahmad-Stern approach revisited

Author

Listed:
  • Carlos M. Urzúa

    (Tecnológico de Monterrey, Campus Ciudad de México)

Abstract

This paper extends the methodology first proposed by Ahmad and Stern for the design of tax reforms that are optimal at the margin. The extension centers on a sharper approximation of welfare measures. The original approach and its variant are illustrated in the case of the current Mexican tax system.

Suggested Citation

  • Carlos M. Urzúa, 2005. "The Ahmad-Stern approach revisited," Economics Bulletin, AccessEcon, vol. 8(4), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-04h00003
    as

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    File URL: http://www.accessecon.com/pubs/EB/2005/Volume8/EB-04H00003A.pdf
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    References listed on IDEAS

    as
    1. Carlos M. Urzúa, 2001. "Welfare consequences of a recent tax reform in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 16(1), pages 57-72.
    2. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
    3. Banks, James & Blundell, Richard & Lewbel, Arthur, 1996. "Tax Reform and Welfare Measurement: Do We Need Demand System Estimation?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1227-1241, September.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

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    2. Gahvari Firouz & Taheripour Farzad, 2011. "Fiscal Reforms in General Equilibrium: Theory and an Application to the Subsidy Debate in Iran," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-54, June.

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    More about this item

    Keywords

    marginal tax analysis;

    JEL classification:

    • H0 - Public Economics - - General
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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