Title

(2) Mechanics of Basic Tax Incidence Analysis

Topic Category

Tax Incidence

Publication Date

2011

Keywords

Tax Burden, Tax Incidence, Who Bears the Burden

Abstract

This shows how the standard market model can be used to determine the relative burden of an excise tax. It provides a way to evaluate how much of the overall tax collection is received by demanders vs. sellers in the market.

Run Time

6:08

Primary Discipline

Microeconomics

Skills Delivered

Ability to use the market model to show the effect of introducing an excise tax into a market. Ability to determine the magnitudes of the total tax collected by government and the aggregate amounts collected respectively from the buyers and sellers in the market.

Rigor Level

2000

Prerequisites

Intro to Tax Incidence Video

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