Slemrod, Joel; Yitzhaki, Shlomo - International Monetary Fund (IMF) - 1995
It is argued that taxation causes three kinds of deadweight losses and two types of direct costs. The deadweight losses …. Some of these social costs tend to be discontinuous and/or nonconvex. Because most models of taxation ignore some … components of the social costs of taxation, their conclusions cannot be of a general nature. An alternative approach to policy …