(2) Mechanics of Basic Tax Incidence Analysis
Tax Burden, Tax Incidence, Who Bears the Burden
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.
Crane, Steven E., "(2) Mechanics of Basic Tax Incidence Analysis" (2011). Principles of Microeconomics. Paper 31.
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.
Intro to Tax Incidence Video