TY - JOUR
T1 - An experimental examination of general equilibrium tax incidence
AU - Quirmbach, Herman C.
AU - Swenson, Charles W.
AU - Vines, Cynthia C.
PY - 1996/9
Y1 - 1996/9
N2 - Tax incidence is examined in an experimental general equilibrium production micro economy. Consistent with predictions, the imposition of a tax on corporate capital resulted in a flow of capital out of the corporate sector, decreased corporate usage of capital relative to labor, and tax-shifting through decreases in the relative prices of capital and non-corporate output. Although capital owners were able to shift some of the tax burden, the corporate tax resulted in a 35% drop in capital owners' share of payoffs. Implications for policy are discussed.
AB - Tax incidence is examined in an experimental general equilibrium production micro economy. Consistent with predictions, the imposition of a tax on corporate capital resulted in a flow of capital out of the corporate sector, decreased corporate usage of capital relative to labor, and tax-shifting through decreases in the relative prices of capital and non-corporate output. Although capital owners were able to shift some of the tax burden, the corporate tax resulted in a 35% drop in capital owners' share of payoffs. Implications for policy are discussed.
KW - Experimental markets
KW - General equilibrium
KW - Tax incidence
KW - Taxation of capital
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U2 - 10.1016/0047-2727(95)01545-0
DO - 10.1016/0047-2727(95)01545-0
M3 - Article
AN - SCOPUS:0030240195
SN - 0047-2727
VL - 61
SP - 337
EP - 358
JO - Journal of Public Economics
JF - Journal of Public Economics
IS - 3
ER -