Abstract
Taxation can be used for both efficiency and equity purposes as well as to finance the system of democracy. Besides simply raising money, taxation can be used to discourage consumption of commodities yielding negative externalities (see Chapter 2), to stabilise national income (as part of discretionary or automatic fiscal policy) and to redistribute income and wealth (see Chapter 12).
This is a preview of subscription content, log in via an institution to check access.
Preview
Unable to display preview. Download preview PDF.
Further reading
Brown, C. V. and Jackson, P. M. (1990) Public Sector Economics 4th edition (Oxford: Basil Blackwell).
Bryson, A. and Mckay, S. (1994) Is it Worth Working: Factors Affecting Labour Supply (London: Policy Studies Institute).
Cullis, J. and Jones, P. (1992) Public Finance and Public Choice: Analytical Perspectives (Maidenhead: McGraw-Hill).
Kay, J. A. and King, M. A. (1990) The British Tax System, 5th edition (Oxford: Oxford University Press).
Author information
Authors and Affiliations
Copyright information
© 1995 Stephen J. Bailey
About this chapter
Cite this chapter
Bailey, S.J. (1995). The Economic Effects of Taxation. In: Public Sector Economics. Macmillan Texts in Economics. Palgrave, London. https://doi.org/10.1007/978-1-349-24004-3_4
Download citation
DOI: https://doi.org/10.1007/978-1-349-24004-3_4
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-59802-3
Online ISBN: 978-1-349-24004-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)