Economic Incentive in Wartime
Bibliographic Data
| ID | 9724237 |
|---|---|
| Authors | F W Paish (corresponding author) |
| Year | 1941 |
| Volume | 8 |
| Issue | 31 |
| Pages | 239 |
| Publication date | 1941-08-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2549331 |
| OpenAlex | W2319694639 |
| Language | EN |
| Citations received | 3 |
THE effect of taxation upon the amount of paid work which the taxpayer will prefer to do has been frequently discussed in economic literature ; but in view of the unprecedented level to which direct taxation in this country has now risen, the subject has attained a degree of practical importance which is thought to justify the following attempt to reexamine some of the issues involved. The simplest way to approach the question of the effect of taxation upon willingness to undertake paid work seems to be to look at its effect upon the demand for leisure , that is to say, upon a man's demand for the use of his own services. The type of income change which has most usually been studied is one involving an equal change in aggregate and in marginal remuneration, such as is produced by a change in rates of hourly wages or by a change in a flat rate income tax. In such cases it has been shownL that the result may be either to increase or to decrease a man's demand for leisure. This indeterminancy is due to the fact that this type of income change gives rise to two distinct and opposing incentives, either of which may prove in any given case to be the stronger. The first of these arises from the change in aggregate income. Since leisure is normally complementary to other goods, it is highly probable that the income elasticity of demand for it is positive, so that, when a man can afford fewer other goods, he can also afford less leisure. Thus a decrease in aggregate income will normally be followed by a decreased demand for leisure, the extent of the decrease being dependent on the income elasticity of demand. Secondly, a change in hourly rates of pay or in a flat rate income tax will also increase or decrease the marginal
Aggregate demand · Aggregate income · Economics · Incentive · Income distribution · Income tax · Labour economics · Macroeconomics · Microeconomics · Monetary economics · Public economics · Remuneration · Taxpayer · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Politics, Economics, and Education Policy
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,06 |
| Citation span | 1977 - 2010 (34) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |