Artikel

The impact of fiscal policies on agricultural household decisions

This paper provides a comparative static analysis of farm household's production, consumption, and labor market decisions under alternative tax policies. We explore the implications of non-separable household decisions caused by widespread non-participation in labor, land, financial and/or food markets, as is typical of low income economies. The analytical results indicate that when labor market imperfections occur, most tax-induced responses are ambiguous, mainly due to shadow price effects. This is particularly the case for the labor market and production responses to most tax tools under study, while a decreasing demand for consumption goods appears to be the result in several cases. Furthermore, tax-induced allocation effects may differ between the non-separable and the separable model versions, indicating the potential impact of labor market constraints on farm household responses to tax policies. In particular, standard taxes as well as a land tax may imply production adjustments in the case of non-separability.

Language
Englisch

Bibliographic citation
Journal: Economic Modelling ; ISSN: 1873-6122 ; Volume: 29 ; Year: 2012 ; Issue: 2 ; Pages: 166-177 ; Amsterdam: Elsevier

Classification
Wirtschaft
Taxation, Subsidies, and Revenue: General
Fiscal Policies and Behavior of Economic Agents: Household
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Subject
agricultural household model
non-separability
taxation

Event
Geistige Schöpfung
(who)
Glauben, Thomas
Herzfeld, Thomas
Loy, Jens-Peter
Renner, Swetlana
Hockmann, Heinrich
Event
Veröffentlichung
(who)
Elsevier
ZBW - Leibniz Information Centre for Economics
(where)
Amsterdam
(when)
2012

DOI
doi:10.1016/j.econmod.2011.09.010
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Glauben, Thomas
  • Herzfeld, Thomas
  • Loy, Jens-Peter
  • Renner, Swetlana
  • Hockmann, Heinrich
  • Elsevier
  • ZBW - Leibniz Information Centre for Economics

Time of origin

  • 2012

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