Revenue-neutral tax policy under price uncertainty

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Holloway, G. J. orcid id iconORCID: https://orcid.org/0000-0002-2058-4504 (1990) Revenue-neutral tax policy under price uncertainty. American Journal of Agricultural Economics, 72 (1). pp. 157-159. ISSN 0002-9092 doi: 10.2307/1243155

Abstract/Summary

The firm's response to revenue-neutral taxation is investigated under price uncertainty. Revenue-neutral policies adjust simultaneously the marginal tax rate and the level of exemptions while keeping expected tax receipts constant. Nonincreasing absolute risk aversion is sufficient to sign the firm's response: a reduction in the marginal rate causes the firm to contract output. Implications are established for the equilibrium level of treasury receipts.

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Item Type Article
URI https://reading-clone.eprints-hosting.org/id/eprint/30556
Identification Number/DOI 10.2307/1243155
Refereed Yes
Divisions Life Sciences > School of Agriculture, Policy and Development > Department of Agri-Food Economics & Marketing
Publisher Oxford University Press
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