曼昆经济学原理税收的代价.ppt

Application:The Costs of Taxation Chapter 8 The Costs of Taxation How do taxes affect the economic well-being of market participants? The Costs of Taxation It does not matter whether a tax on a good is levied on buyers or sellers of the good…the price paid by buyers rises, and the price received by sellers falls. The Effects of a Tax... The Effects of a Tax A tax places a wedge between the price buyers pay and the price sellers receive. Because of this tax wedge, the quantity sold falls below the level that would be sold without a tax. The size of the market for that good shrinks. Tax Revenue Tax Revenue... How a Tax Affects Welfare... Changes in Welfare from a Tax How a Tax Affects Welfare The change in total welfare includes: The change in consumer surplus, The change in producer surplus, The change in tax revenue. The losses to buyers and sellers exceed the revenue raised by the government. This fall in total surplus is called the deadweight loss. Deadweight Losses and the Gains from Trade Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade. The Deadweight Loss... Determinants of Deadweight Loss What determines whether the deadweight loss from a tax is large or small? The magnitude of the deadweight loss depends on how much the quantity supplied and quantity demanded respond to changes in the price. That, in turn, depends on the price elasticities of supply and demand. Tax Distortions and Elasticities... Tax Distortions and Elasticities... Tax Distortions and Elasticities... Tax Distortions and Elasticities... Determinants of Deadweight Loss The greater the elasticities of demand and supply: the larger will be the decline in equilibrium quantity and, the greater the deadweight loss of a tax. The Deadweight Loss Debate Some economists argue that labor taxes are highly distorting and believe that labor supply is more elastic. The Deadweight Loss Debate Some examples of workers who may respond mo