Economic Analysis of Alternative Revenue Generating Policies for State Financing.

Cover 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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