A Caltech Library Service

Uncertainty and the Theory of Tax Incidence in a Stock Market Economy

Baron, David P. and Forsythe, Robert (1981) Uncertainty and the Theory of Tax Incidence in a Stock Market Economy. International Economic Review, 22 (3). pp. 567-576. ISSN 0020-6598.

[img] PDF - Published Version
See Usage Policy.


Use this Persistent URL to link to this item:


[Introduction] Commencing with Harberger's [1962] classic paper, a number of studies have analyzed the incidence of taxation in the context of a deterministic, two-sector, two-factor general equilibrium model. Recently, R. N. Batra [1975] and R. A. Ratti and P. Shome [1977a, 1977b] have reexamined the robustness of these deterministic results for the case in which production uncertainty is incorporated into the model. By using "entrepreneurial" models in which the firm is assumed to maximize the expected utility of profits, they find that the incidence of taxes depends on the preferences and probability assessments of the entrepreneur, and in general, the deterministic results no longer obtain.

Item Type:Article
Related URLs:
URLURL TypeDescription ItemSocial Science Working Paper 259
Additional Information:Manuscript received September 4, 1979; revised March 31, 1981. The first author's work has been supported by NSF Grant #SOC 77-07251. We wish to thank Frank Milne and Assaf Razin for their helpful comments on earlier versions of this paper.
Funding AgencyGrant Number
NSFSOC 77-07251
Issue or Number:3
Record Number:CaltechAUTHORS:20171018-153852235
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:82470
Deposited By: Katherine Johnson
Deposited On:18 Oct 2017 22:44
Last Modified:03 Oct 2019 18:54

Repository Staff Only: item control page