Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062393 | Economics Letters | 2007 | 6 Pages |
Abstract
Among all measures based on money metric compensation functions, solely the excess burden based on the equivalent variation always correctly identifies the excess burden of a specific tax to be positive. This provides a new argument for the use of the equivalent variation when measuring the welfare effects of a price change.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Julio R. Robledo, Andreas Wagener,