TY  - JOUR
AU  - Fullerton,Don
AU  - Henderson,Yolanda K.
TI  - A Disaggregate Equilibrium Model of the Tax Distortions Among Assets,   Sectors, and Industries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1905
PY  - 1989
Y2  - August 1989
UR  - http://www.nber.org/papers/w1905
L1  - http://www.nber.org/papers/w1905.pdf
N1  - Author contact info:
Don Fullerton
Department of Finance
University of Illinois
BIF Box#30 (MC520)
515 East Gregory Drive
Champaign, IL  61820
Tel: 217/244-3621
Fax: 217/244-3102
E-Mail: dfullert@illinois.edu

yolanda henderson
E-Mail: yolahenderson@cox.net
AB  - This paper encompasses multiple sources of inefficiency introduced by the U.S. tax system into a single general equilibrium model. Using disaggregate calculations of user cost, we measure interasset distortions from the differential taxation of many types of assets. Simultaneously, we model the intersectoral distortions from the differential treatment of the corporate sector, noncorporate sector, and owner-occupied housing. Industries in the model have different uses of assets and degrees of incorporation. Results indicate that distortions between sectors are much smaller than those of the Harberger model. Distortions among industries arealso much smaller than those in models using average effective tax rates. Distortions among assets are larger, but the total of all these welfare costs is still below one percent of income.
ER  -