Thursday, September 28, 2023
SCIENMAG: Latest Science and Health News
No Result
View All Result
  • Login
  • HOME PAGE
  • BIOLOGY
  • CHEMISTRY AND PHYSICS
  • MEDICINE
    • Cancer
    • Infectious Emerging Diseases
  • SPACE
  • TECHNOLOGY
  • CONTACT US
  • HOME PAGE
  • BIOLOGY
  • CHEMISTRY AND PHYSICS
  • MEDICINE
    • Cancer
    • Infectious Emerging Diseases
  • SPACE
  • TECHNOLOGY
  • CONTACT US
No Result
View All Result
Scienmag - Latest science news from science magazine
No Result
View All Result
Home SCIENCE NEWS Social & Behavioral Science

To tax or not to tax, is that even a question?

July 26, 2022
in Social & Behavioral Science
0
Share on FacebookShare on Twitter

Kyoto, Japan — Robin Hood would not even have had to become an outlaw if the markets had been more competitive and Nottingham’s taxation office had known how to assess taxes efficiently.

Imperfect competition and its burden on social surplus

Credit: KyotoU/Takanori Adachi

Kyoto, Japan — Robin Hood would not even have had to become an outlaw if the markets had been more competitive and Nottingham’s taxation office had known how to assess taxes efficiently.

Today’s financial world may not require a savior dressed in green, but it remains to be seen whether there is a need to reflect on checks and balances in examining invisible loss assessment.

Now, a researcher at Kyoto University and his collaborator are proposing a solution with an analytical framework for evaluating tax efficiency, mainly in the context of consumption taxes on goods. Consumer surplus and producer surplus — together, social surplus — both frame the dynamic relationships that describe the impact of tax changes on social welfare in tangible and intangible ways.

“This impact constitutes the invisible burden, manifested as behavioral constraints imposed by taxation on producers and consumers, added to the visible burden of the actual amount taxed,” explains lead author Takanori Adachi.

The team has derived a formula expressing the marginal cost of public funds, essentially a ratio of a net loss in social surplus to a net increase in tax revenue.

“We derived this formula from only a few indices, common across specific market demand conditions and cost factors, that clearly tell us how the degree of tax-driven social burden relates to imperfect competition,” the author adds.

The team has derived a second formula, termed the incidence, to express the decrease in consumer benefits relative to net decrease in producer profits. This formula relies on the same indices as the first formula, helping to describe the general state of consumer confidence and perhaps hinting at economic forecasts.

“Our theoretical framework focuses on a single market for a deeper study of how the socio- economic factors interrelate,” says Adachi.

“Initially surprising but natural in hindsight is our finding that the assessment formulas reflect only the indices related to demand and cost structures plus the mode of competition.”

###

The paper “Pass-Through, Welfare, and Incidence under Imperfect Competition” appeared on 3 June 2022 in Journal of Public Economics, with doi: 10.1016/j.jpubeco.2021.104589

About Kyoto University

Kyoto University is one of Japan and Asia’s premier research institutions, founded in 1897 and responsible for producing numerous Nobel laureates and winners of other prestigious international prizes. A broad curriculum across the arts and sciences at both undergraduate and graduate levels is



Journal

Journal of Public Economics

DOI

10.1016/j.jpubeco.2021.104589

Method of Research

Data/statistical analysis

Subject of Research

Not applicable

Article Title

Pass-Through, Welfare, and Incidence under Imperfect Competition

Article Publication Date

3-Jun-2022

COI Statement

The authors declare that they have no known competing interests.

Tags: questiontax
Share26Tweet16Share4ShareSendShare
  • Grape Wood Borer

    Important additional driver of insect decline identified: Weather explains the decline and rise of insect biomass over 34 years

    69 shares
    Share 28 Tweet 17
  • Null results research now published by major behavioral medicine journal

    1057 shares
    Share 423 Tweet 264
  • New study definitively confirms gulf stream weakening, understanding the changes could help predict future trends in extreme events

    68 shares
    Share 27 Tweet 17
  • New findings on hair loss in men

    81 shares
    Share 32 Tweet 20
  • Abdominal fat plays important role in remission of prediabetes

    65 shares
    Share 26 Tweet 16
  • New rooms discovered in Sahura’s Pyramid

    65 shares
    Share 26 Tweet 16
ADVERTISEMENT

About us

We bring you the latest science news from best research centers and universities around the world. Check our website.

Latest NEWS

Null results research now published by major behavioral medicine journal

New findings on hair loss in men

Important additional driver of insect decline identified: Weather explains the decline and rise of insect biomass over 34 years

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 208 other subscribers

© 2023 Scienmag- Science Magazine: Latest Science News.

No Result
View All Result
  • HOME PAGE
  • BIOLOGY
  • CHEMISTRY AND PHYSICS
  • MEDICINE
    • Cancer
    • Infectious Emerging Diseases
  • SPACE
  • TECHNOLOGY
  • CONTACT US

© 2023 Scienmag- Science Magazine: Latest Science News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In