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Taxes and Subsidies in the Input-Output Model

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  • Hiroshi Atsumi

Abstract

This paper reexamines Metzler's analysis of the effects of taxes and subsidies on the competitive supply prices of output in Leontiefs system. It will be shown that Metzler's conclusions are valid even if one removes the assumptions made by Metzler, and that Allen's conclusion concerning the ad valorem tax is false. We present some interesting properties of Leontiefs system, and also provide a theorem on Metzler's matrix, proving it and deriving some useful properties on the inverse matrix of the input-output model

Suggested Citation

  • Hiroshi Atsumi, 1981. "Taxes and Subsidies in the Input-Output Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(1), pages 27-45.
    • Handle: RePEc:oup:qjecon:v:96:y:1981:i:1:p:27-45.
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    File URL: http://hdl.handle.net/10.2307/2936139
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    Cited by:

    1. Han, Han Soo, 1990. "The theoretical input-output system with flexible technological coefficients based on the two-stage level CES-type production function," ISU General Staff Papers 1990010108000010500, Iowa State University, Department of Economics.
    2. Albert Steenge, 2000. "The Rents Problem in the Tableau Economique : Revisiting the Phillips Model," Economic Systems Research, Taylor & Francis Journals, vol. 12(2), pages 181-197.
    3. Siebe, Thomas, 1995. "Taxes and subsidies in a multisectoral econometric model," Economic Modelling, Elsevier, vol. 12(2), pages 193-204, April.

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