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Welfare Dominance: An Application to Commodity Taxation

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  • Yitzhaki, Shlomo
  • Slemrod, Joel

Abstract

In this paper, the authors propose a method to identify commodity-tax changes that will be favored by all individuals who can agree on certain weak assumptions with regard to the social-welfare function. The method is based on an extension of the criterion of second-degree stochastic dominance and is illustrated using data from Israel. Copyright 1991 by American Economic Association.

Suggested Citation

  • Yitzhaki, Shlomo & Slemrod, Joel, 1991. "Welfare Dominance: An Application to Commodity Taxation," American Economic Review, American Economic Association, vol. 81(3), pages 480-496, June.
    • Handle: RePEc:aea:aecrev:v:81:y:1991:i:3:p:480-96
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    References listed on IDEAS

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    8. Hadar, Josef & Russell, William R, 1969. "Rules for Ordering Uncertain Prospects," American Economic Review, American Economic Association, vol. 59(1), pages 25-34, March.
    9. Pak-Wai Liu, 1985. "Lorenz Domination and Global Tax Progressivity," Canadian Journal of Economics, Canadian Economics Association, vol. 18(2), pages 395-399, May.
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