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.
Recommended Citation
Crane, Steven E., "(2) Mechanics of Basic Tax Incidence Analysis" (2011). Principles of Microeconomics. Paper 31.
http://epublications.marquette.edu/microecon_learning/31
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