search query: @indexterm Subsidies / total: 222
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Author: | Ruffle, B.J. |
Title: | Tax and subsidy incidence equivalence theories: experimental evidence from competitive markets |
Journal: | Journal of Public Economics
2005 : AUG, VOL. 89:8, p. 1519-1542 |
Index terms: | Microeconomics Subsidies Taxation |
Language: | eng |
Abstract: | This article examines both tax equivalence and an analogous theorem for subsidies using competitive laboratory markets. The tax incidence equivalence holds that the burden of a unit tax on buyers and sellers is independent of who actually pays the tax. The results suggest strong support for both theories. However, the support requires sufficiently large markets. |
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