IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v3y1985i3p285-297.html
   My bibliography  Save this article

Dynamic Incidence in a Two-Sector Growing Economy

Author

Listed:
  • M Homma

    (Department of Economics, Osaka University, Toyonaka, Osaka, Japan)

Abstract

The aim in this paper is to provide a systematic approach to the long-run incidence analysis in a two-sector growth model. For this end, a long-run incidence model as close as possible to the standard short-run incidence model shall be built, and a method of conducting the comparative dynamic analysis which evaluates the long-run factor income distribution will be developed. In so doing, the following three steps shall be taken. First, the logical structure of the long-run incidence model is carefully explored to clarify the relationship between the long-run incidence and the short-run incidence. Second, previous work is extended to cover the long-run incidence effects of other taxes such as commodity or wage taxes. Third, concrete propositions on the long-run incidence are established comparable to those on the short-run incidence.

Suggested Citation

  • M Homma, 1985. "Dynamic Incidence in a Two-Sector Growing Economy," Environment and Planning C, , vol. 3(3), pages 285-297, September.
    • Handle: RePEc:sae:envirc:v:3:y:1985:i:3:p:285-297
    DOI: 10.1068/c030285
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/c030285
    Download Restriction: no
    File URL: https://libkey.io/10.1068/c030285?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Martin Feldstein, 1974. "Incidence of a Capital Income Tax in a Growing Economy with Variable Savings Rates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(4), pages 505-513.
    2. Ballentine, J Gregory, 1978. "The Incidence of a Corporation Income Tax in a Growing Economy," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 863-875, October.
    3. Martin S. Feldstein, 1974. "Tax Incidence in a Growing Economy with Variable Factor Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(4), pages 551-573.
    4. Grieson, Ronald E., 1975. "The incidence of profits taxes in a neo-classical growth model," Journal of Public Economics, Elsevier, vol. 4(1), pages 75-85, February.
    5. Homma, Masaaki, 1981. "A dynamic analysis of the differential incidence of capital and labour taxes in a two-class economy," Journal of Public Economics, Elsevier, vol. 15(3), pages 363-378, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reuven Avi-Yonah, "undated". "The Pitfalls of International Integration: A Comment on the Bush Proposal and Its Aftermath," University of Michigan John M. Olin Center for Law & Economics Working Paper Series umichlwps-1007, University of Michigan John M. Olin Center for Law & Economics.
    2. Reuven Avi-Yonah, 2005. "The Pitfalls of International Integration: A Comment on the Bush Proposal and its Aftermath," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(1), pages 87-95, January.
    3. Fullerton, Don & Metcalf, Gilbert E., 2002. "Tax incidence," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 26, pages 1787-1872, Elsevier.
    4. Laurence S. Seidman, 1984. "The Welfare Economics of Taxes: a Three-Class Disposable Income Growth Model," Public Finance Review, , vol. 12(1), pages 3-26, January.
    5. Clemens Fuest & Andreas Peichl & Sebastian Siegloch, 2018. "Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany," American Economic Review, American Economic Association, vol. 108(2), pages 393-418, February.
    6. Thomas K. Bauer & Tanja Kasten & Lars-H. R. Siemers, 2017. "Business Taxation and Wages: Redistribution and Asymmetric Effects," MAGKS Papers on Economics 201732, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Charles E. McLure Jr., 1981. "The Elusive Incidence of the Corporate Income Tax: The State Case," Public Finance Review, , vol. 9(4), pages 395-413, October.
    8. Ruocco, Anna, 1995. "Savings and investment fiscal policies: A quantitative analysis for the Italian economy," Tübinger Diskussionsbeiträge 49, University of Tübingen, School of Business and Economics.
    9. Kenneth L. Judd, 1983. "Exercises in Voodoo Economics," Discussion Papers 558, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    10. Fuest, Clemens & Peichl, Andreas & Siegloch, Sebastian, 2015. "Do Higher Corporate Taxes Reduce Wages?," IZA Discussion Papers 9606, Institute of Labor Economics (IZA).
    11. Judd, Kenneth L, 1987. "The Welfare Cost of Factor Taxation in a Perfect-Foresight Model," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 675-709, August.
    12. Fullerton, Don & Shoven, John B. & Whalley, John, 1983. "Replacing the U.S. income tax with a progressive consumption tax : A sequenced general equilibrium approach," Journal of Public Economics, Elsevier, vol. 20(1), pages 3-23, February.
    13. Frenkel, Jacob A & Razin, Assaf, 1987. "Fiscal Policies and the World Economy; An Intertemporal Approach (Cambridge, Mass.: MIT Press, 1987)," MPRA Paper 20438, University Library of Munich, Germany.
    14. LI, Chunding & WHALLEY, John, 2012. "Rebalancing and the Chinese VAT: Some numerical simulation results," China Economic Review, Elsevier, vol. 23(2), pages 316-324.
    15. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    16. Lansing, Kevin J., 1999. "Optimal redistributive capital taxation in a neoclassical growth model," Journal of Public Economics, Elsevier, vol. 73(3), pages 423-453, September.
    17. Don Fullerton, 1983. "Transition Losses of Partially Mobile Industry-Specific Capital," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(1), pages 107-125.
    18. Kevin A. Hassett & Aparna Mathur, 2015. "A spatial model of corporate tax incidence," Applied Economics, Taylor & Francis Journals, vol. 47(13), pages 1350-1365, March.
    19. Andrew Reschovsky & Howard Chernick, 1989. "Federal Tex Reform and the Taxation of Urban Residents," Public Finance Review, , vol. 17(2), pages 123-157, April.
    20. Zodrow, George R. & Diamond, John W., 2013. "Dynamic Overlapping Generations Computable General Equilibrium Models and the Analysis of Tax Policy: The Diamond–Zodrow Model," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 743-813, Elsevier.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envirc:v:3:y:1985:i:3:p:285-297. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.