This paper presents an empirical analysis of the welfare effects of several indirect tax reforms in Australia. The welfare changes are measured in terms of equivalent variations and equivalent incomes, using estimates of the linear expenditure system for each of a range of income groups. The...

This paper examines the Gini-based method of decomposing the redistributive effect of taxation into vertical, horizontal, and reranking components. The consequences of different bandwidth choices, used to identify close-equals groups to estimate the horizontal effect, are discussed. Two opposing...

1. Introduction 2. Labour Supply 3. The Slutsky Condition 4. Welfare Changes 4.1 The Expenditure Function 4.2 Compensating and Equivalent Variations 5. Numerical Examples 5.1 The Tax System 5.2 Utility and Labour Supply 6. Conclusions

This paper discusses some of the issues raised by comparisons involving different time periods and population groups. It does not examine the effects of using alternative accounting periods for tax assessment purposes, but considers the possible effects on inequality and progressivity of...

This paper examines methods used to evaluate welfare effects of tax changes, with emphasis on the measurement problems involved. Welfare changes and excess burdens are defined, along with approximations. Aggregate measures, using a social welfare function, are examined. A special case of income...