Unit 3 Study Guide

 

Tax Incidence

Sources & Uses

Economic incidence & elasticity’s

Partial equilibrium models

General equilibrium models

Tax equivalence

Harberger Model

·        Assumptions

·        Commodity tax

·        Partial factor tax

 

Indifference Curve analysis

·        IE & SE

·        Excess Burden

·        Tax Revenue

·        EV

 

Hicksian Demand

Ramsey Rule

Inverse Elasticity Rule (any limiting assumptions)

Corlett-Hague Rule

Time Inconsistency Problem

Horizontal Equity

 

Steps for Calculating US Income Taxes

Haig-Simons Definition

Taxing Capital Gains (actual, problems, ideal)

Marriage Tax

 

Taxation & Labor Supply Decisions

Taxation & Housing (rationale, affects, tax expenditure esp. compared to housing assistance)

 

Consumption Tax

VAT—three types; how its implemented

Cash Flow Tax

Advantages & Disadvantages of Consumption Tax

Wealth & Estate Taxes

 

Also know  presentation handouts, Henry George, and WWW information.