Arbeitspapier
Are income and consumption taxes ever really equivalent?: evidence from a real-effort experiment with real goods
The public finance literature demonstrates the equivalence between consumption and labor income (wage) taxes. We construct an environment in which individuals make real labor-leisure choices and spend their earned income on real goods. We use this experimental framework to test whether a labor income tax and an equivalent consumption tax lead to an identical labor-leisure allocation. Despite controlling for subjects' work ability and inherent labor-leisure preferences and not allowing for saving, subjects reduce their labor supply significantly more in response to an income tax than they do in response to an equivalent consumption tax. We discuss the economic implications of a policy shift from an income to a consumption tax.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 2194
- Klassifikation
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Taxation and Subsidies: Incidence
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fiscal Policies and Behavior of Economic Agents: Household
- Thema
-
experimental economics
tax equivalence
income tax
consumption tax
behavioral economics
Einkommensteuer
Verbrauchsteuer
Steuerinzidenz
Privater Haushalt
Test
Verhaltensökonomik
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Blumkin, Tomer
Ruffle, Bradley J.
Ganun, Yosef
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Blumkin, Tomer
- Ruffle, Bradley J.
- Ganun, Yosef
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2008