Economic Analysis of Alternative Revenue Generating Policies for State Financing.
Economic Analysis of Alternative Revenue Generating Policies for State Financing.
Baarda, James R. (James Ronald)
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Tax type plays a secondary role in specifying the strength of necessary assumptions. To this point assumptions have been discussed as a means of making the tax analysis valid in the absence of external information about the input-output-tax revenue figures. In addition to these specific assumptions, tax analysis using an input-output model requires that the input-output model itself be a valid representation of the economic activity within a given economy, thus requiring either acceptance of al...l the assumptions about the economic system underlying the model or a model properly modified to account for facts which the assumptions will not allow. The method of analysis used in this study also requires that the relationship between input-output figures and tax revenue generation be a linear function, even when external information may provide a different allocation among sectors than the rather perfunc- tory allocation used in this study. CHAPTER VI TAX ANALYSIS The preceding chapters have established a foundation upon which tax analysis using the input-output model can now be considered in more detail.
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