9512.net
甜梦文库
当前位置:首页 >> 管理学 >>

曼昆《经济学原理》applications


Application: The Costs of Taxation

8

Copyright?2004 South-Western

Application: The Costs of Taxation
? Welfare economics is the study of how the allocation of resources affects economic wellbeing.
? Buyers and sellers receive benefits from taking part in the market. ? The equilibrium in a market maximizes the total welfare of buyers and sellers.

Copyright ? 2004 South-Western/Thomson Learning

THE DEADWEIGHT LOSS OF TAXATION
? How do taxes affect the economic well-being of market participants?

Copyright ? 2004 South-Western/Thomson Learning

THE DEADWEIGHT LOSS OF TAXATION
? It does not matter whether a tax on a good is levied on buyers or sellers of the good . . . the price paid by buyers rises, and the price received by sellers falls.

Copyright ? 2004 South-Western/Thomson Learning

Figure 1 The Effects of a Tax

Price

Supply Price buyers pay Price without tax Price sellers receive Demand Size of tax

0

Quantity with tax

Quantity without tax

Quantity
Copyright ? 2004 South-Western

How a Tax Affects Market Participants
? A tax places a wedge between the price buyers pay and the price sellers receive. ? Because of this tax wedge, the quantity sold falls below the level that would be sold without a tax. ? The size of the market for that good shrinks.

Copyright ? 2004 South-Western/Thomson Learning

How a Tax Affects Market Participants
? Tax Revenue
? T = the size of the tax ? Q = the quantity of the good sold

T ? Q = the government’s tax revenue

Copyright ? 2004 South-Western/Thomson Learning

Figure 2 Tax Revenue
Price

Supply Price buyers pay Tax revenue (T × Q) Price sellers receive Quantity sold (Q) Size of tax (T)

Demand

0

Quantity with tax

Quantity without tax

Quantity
Copyright ? 2004 South-Western

Figure 3 How a Tax Effects Welfare

Price

Price buyers = PB pay Price without tax = P1 Price sellers = PS receive

A

Supply

B

C E

D F

Demand

0

Q2

Q1

Quantity

Copyright ? 2004 South-Western

How a Tax Affects Market Participants
? Changes in Welfare
? A deadweight loss is the fall in total surplus that results from a market distortion, such as a tax.

Copyright ? 2004 South-Western/Thomson Learning

How a Tax Affects Welfare

Copyright ? 2004 South-Western/Thomson Learning

How a Tax Affects Market Participants
? The change in total welfare includes:
? ? ? ? The change in consumer surplus, The change in producer surplus, and The change in tax revenue. The losses to buyers and sellers exceed the revenue raised by the government. ? This fall in total surplus is called the deadweight loss.

Copyright ? 2004 South-Western/Thomson Learning

Deadweight Losses and the Gains from Trade
? Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade.

Copyright ? 2004 South-Western/Thomson Learning

Figure 4 The Deadweight Loss
Price

PB Size of tax
Price without tax PS

Lost gains from trade

Supply

Value to buyers 0 Q2 Q1

Cost to sellers

Demand

Quantity

Reduction in quantity due to the tax
Copyright ? 2004 South-Western

DETERMINANTS OF THE DEADWEIGHT LOSS
? What determines whether the deadweight loss from a tax is large or small?
? The magnitude of the deadweight loss depends on how much the quantity supplied and quantity demanded respond to changes in the price. ? That, in turn, depends on the price elasticities of supply and demand.

Copyright ? 2004 South-Western/Thomson Learning

Figure 5 Tax Distortions and Elasticities
(a) Inelastic Supply Price Supply

When supply is relatively inelastic, the deadweight loss of a tax is small. Size of tax

Demand 0 Quantity

Copyright ? 2004 South-Western

Figure 5 Tax Distortions and Elasticities
(b) Elastic Supply Price When supply is relatively elastic, the deadweight loss of a tax is large.

Size of tax

Supply

Demand 0 Quantity

Copyright ? 2004 South-Western

Figure 5 Tax Distortions and Elasticities
(c) Inelastic Demand
Price Supply

Size of tax When demand is relatively inelastic, the deadweight loss of a tax is small.

Demand

0

Quantity
Copyright ? 2004 South-Western

Figure 5 Tax Distortions and Elasticities
(d) Elastic Demand Price Supply

Size of tax When demand is relatively elastic, the deadweight loss of a tax is large. 0

Demand

Quantity
Copyright ? 2004 South-Western

DETERMINANTS OF THE DEADWEIGHT LOSS
? The greater the elasticities of demand and supply:
? the larger will be the decline in equilibrium quantity and, ? the greater the deadweight loss of a tax.

Copyright ? 2004 South-Western/Thomson Learning

DEADWEIGHT LOSS AND TAX REVENUE AS TAXES VARY
? The Deadweight Loss Debate
? Some economists argue that labor taxes are highly distorting and believe that labor supply is more elastic. ? Some examples of workers who may respond more to incentives:
? ? ? ? Workers who can adjust the number of hours they work Families with second earners Elderly who can choose when to retire Workers in the underground economy (i.e., those engaging in illegal activity)
Copyright ? 2004 South-Western/Thomson Learning

DEADWEIGHT LOSS AND TAX REVENUE AS TAXES VARY
? With each increase in the tax rate, the deadweight loss of the tax rises even more rapidly than the size of the tax.

Copyright ? 2004 South-Western/Thomson Learning

Figure 6 Deadweight Loss and Tax Revenue from Three Taxes of Different Sizes
(a) Small Tax Price

Deadweight loss Supply PB Tax revenue PS Demand

0

Q2

Q1 Quantity
Copyright ? 2004 South-Western

Figure 6 Deadweight Loss and Tax Revenue from Three Taxes of Different Sizes
(b) Medium Tax Price
Deadweight loss

PB

Supply Tax revenue

PS

Demand

0

Q2

Q1 Quantity
Copyright ? 2004 South-Western

Figure 6 Deadweight Loss and Tax Revenue from Three Taxes of Different Sizes
(c) Large Tax Price PB
Deadweight loss Tax revenue

Supply

Demand PS 0 Q2 Q1 Quantity
Copyright ? 2004 South-Western

DEADWEIGHT LOSS AND TAX REVENUE AS TAXES VARY
? For the small tax, tax revenue is small. ? As the size of the tax rises, tax revenue grows. ? But as the size of the tax continues to rise, tax revenue falls because the higher tax reduces the size of the market.

Copyright ? 2004 South-Western/Thomson Learning

Figure 7 How Deadweight Loss and Tax Revenue Vary with the Size of a Tax
(a) Deadweight Loss Deadweight Loss

0

Tax Size
Copyright ? 2004 South-Western

Figure 7 How Deadweight Loss and Tax Revenue Vary with the Size of a Tax
(b) Revenue (the Laffer curve) Tax Revenue

0

Tax Size
Copyright ? 2004 South-Western

DEADWEIGHT LOSS AND TAX REVENUE AS TAXES VARY
? As the size of a tax increases, its deadweight loss quickly gets larger. ? By contrast, tax revenue first rises with the size of a tax, but then, as the tax gets larger, the market shrinks so much that tax revenue starts to fall.

Copyright ? 2004 South-Western/Thomson Learning

CASE STUDY: The Laffer Curve and Supplyside Economics
? The Laffer curve depicts the relationship between tax rates and tax revenue. ? Supply-side economics refers to the views of Reagan and Laffer who proposed that a tax cut would induce more people to work and thereby have the potential to increase tax revenues.

Copyright ? 2004 South-Western/Thomson Learning

Summary
? A tax on a good reduces the welfare of buyers and sellers of the good, and the reduction in consumer and producer surplus usually exceeds the revenues raised by the government. ? The fall in total surplus—the sum of consumer surplus, producer surplus, and tax revenue — is called the deadweight loss of the tax.

Copyright ? 2004 South-Western/Thomson Learning

Summary
? Taxes have a deadweight loss because they cause buyers to consume less and sellers to produce less. ? This change in behavior shrinks the size of the market below the level that maximizes total surplus.

Copyright ? 2004 South-Western/Thomson Learning

Summary
? As a tax grows larger, it distorts incentives more, and its deadweight loss grows larger. ? Tax revenue first rises with the size of a tax. ? Eventually, however, a larger tax reduces tax revenue because it reduces the size of the market.

Copyright ? 2004 South-Western/Thomson Learning


赞助商链接

更多相关文章:
曼昆《经济学原理》(微观经济学分册)整理
曼昆《经济学原理》(微观经济学分册)整理 - 第 1 章 经济学十大原理 1.经济学 经济学是研究如何将稀缺的资源有效地配置给相互竞争的用途,以使人类的欲望得到最...
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详...
Born to win 经济学考研交流群 <<<点击加入 曼昆《经济学原理(微观经济学分册) 》 (第 6 版) 第1篇 导言第 1 章 经济学十大原理 课后习题详解 跨考网...
曼昆《经济学原理》答案_图文
曼昆《经济学原理》答案_经济学_高等教育_教育专区。答案啊,亲 第一篇 第一章 导 言 经济学十大原理 复习题 1.列举三个你在生活中面临的重要权衡取舍的例子...
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详...
Born to win 经济学考研交流群 <<<点击加入 曼昆《经济学原理(微观经济学分册) 》 (第 6 版) 第 5 章 弹性及其应用 课后习题详解 跨考网独家整理最全经济...
曼昆-十大经济学原理,中英文对照
曼昆-十大经济学原理,中英文对照_财务管理_经管营销_专业资料。十大经济学原理。曼昆《经济学原理》一书中提出了十大经济学原理,他们分别是: 十大经济学原理一 ...
曼昆《经济学原理》有感
曼昆《经济学原理》有感自从 20 世纪 80 年代以来经济学有了重大发展, 这就使越来越多的经济学家 把经济学作为一门科学来看待。曼昆的《经济学原理》正反映...
曼昆《经济学原理(微观经济学分册)》(第6版)笔记和课后...
曼昆《经济学原理(微观经济学分册)》(第6版)笔记和课后习题(含考研真题)详解_研究生入学考试_高等教育_教育专区。曼昆《经济学原理(微观经济学分册)》(第6版) ...
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详...
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详解(第16章 垄断竞争) - Born to win 经济学考研交流群 <<<点击加入 曼昆《经济学原理(微观经济学分册...
曼昆《经济学原理(宏观经济学分册)》(第6版)课后习题详解
Born to win 经济学考研交流群 <<<点击加入 曼昆《经济学原理(宏观经济学分册) 》 (第 6 版) 第 34 章 货币政策和财政政策对总需求的影响 课后习题详解 ...
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详...
Born to win 经济学考研交流群 <<<点击加入 曼昆《经济学原理(微观经济学分册) 》 (第 6 版) 第 8 章 应用:赋税的代价 课后习题详解 跨考网独家整理最全...
更多相关标签:

All rights reserved Powered by 甜梦文库 9512.net

copyright ©right 2010-2021。
甜梦文库内容来自网络,如有侵犯请联系客服。zhit325@126.com|网站地图