《财政学教学资料》ch07.docVIP

Chapter 11 Taxation, Prices, Efficiency,and the Distribution of Income Instructional Objectives This chapter is designed to make students aware of the impact of taxes in markets. The emphasis is on the effect taxes have on prices and how taxes change prices in ways that affect efficiency and income distribution. This is a very important chapter because it develops the techniques of analysis that will be used in the following chapters on tax policy. The student should be advised to read this chapter carefully. The student should understand the concept of a lump-sum tax as a benchmark for comparing taxes. It is important for the student to realize that a lump-sum tax results in income effects but has no substitution effects. The student should also thoroughly comprehend how a price-distorting tax causes losses in efficiency by making buyers and sellers react to different prices. This requires that the student be able to use supply-and-demand analysis to show the excess burden of the tax and understand how it varies with key factors. Another goal is to show how tax-induced changes in prices affect income shares. The student should see that tax incidence is independent of the legal liability for taxes. It is very important to make it clear that tax incidence depends on market conditions rather than on whims of sellers to raise prices. Various techniques for evaluating the impact of taxes on the actual distribution of income are also discussed in the chapter. Changes in This Edition There were no changes in this core theory chapter. Chapter Outline Lump-Sum Taxes: A Benchmark Standard for Comparison Lump-Sum versus Price-Distorting Taxes:Indifference Curve Analysis International View: The Lump-Sum Tax Takes Its Lumps in the U.K. The Impact of Taxes on Market Prices and Efficiency A Unit Excise Tax:Impact of Market Equilibrium Excess Burden of a Unit Tax Excess Burden, Unit Taxes, and Price Elasticities The Efficiency-Loss Ratio of a Tax Incidence of a Unit Tax Ad Valo