The legal incidence of ad valorem taxes matters

dc.contributor.author	Pauwels, Wilfried
dc.contributor.author	Schroyen, Fred
dc.date.accessioned	2023-12-19T14:16:20Z
dc.date.available	2023-12-19T14:16:20Z
dc.date.issued	2023-12-19
dc.identifier.issn	0804-6824
dc.identifier.uri	https://hdl.handle.net/11250/3108247
dc.description.abstract	It is well known that, for a specific tax, its economic incidence does not depend on which side of the market has the legal obligation to pay the tax. In this paper, we show that, for an ad valorem tax, this legal incidence does matter for the economic incidence. In particular, when a government imposes an ad valorem tax rate on the sale of a commodity, the resulting reduction in the market equilibrium level of sales will be larger when sellers are obliged to pay the tax than when buyers are obliged to pay the tax.	en_US
dc.language.iso	eng	en_US
dc.publisher	Institutt for samfunnsøkonomi	en_US
dc.relation.ispartofseries	DP SAM;23/2023
dc.subject	Economic incidence	en_US
dc.subject	Legal incidence	en_US
dc.subject	Statutory incidence	en_US
dc.subject	ad valorem taxes	en_US
dc.subject	Invariance theorem	en_US
dc.title	The legal incidence of ad valorem taxes matters	en_US
dc.type	Working paper	en_US
dc.source.pagenumber	13	en_US