• 1 Introduction
  • 2 Income Taxation
  • 2.1 Basic De…nitions
  • 2.2 A Multi-step Tax Function
  • 2.3 Aggregate Revenue Elasticity
  • 3 Income and Consumption Taxes
  • 3.1 Individual Revenue Elasticity
  • 3.2 Uniform Taxes
  • 3.3 The Two-rate Case
  • 3.4 Aggregate Consumption Tax Revenue Elasticity
  • 4 Changes in Consumption Tax Rates
  • 5 Illustrative Examples
  • 5.1 Individual Revenue Elasticities
  • 5.2 Aggregate Revenue Elasticities
  • 6 Conclusions