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Tax Reform and Land‐Using Sectors in the U.S. Economy: A General Equilibrium Analysis
Author(s) -
Boyd Roy,
Newman David H.
Publication year - 1991
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242723
Subject(s) - computable general equilibrium , economics , general equilibrium theory , partial equilibrium , agriculture , production (economics) , tax reform , value (mathematics) , secondary sector of the economy , government sector , government (linguistics) , economy , macroeconomics , market economy , economic growth , private sector , ecology , linguistics , philosophy , machine learning , computer science , biology
A computable general equilibrium model of the U.S. economy is used to assess the effects of the Tax Reform Act of 1986 on land‐using sectors (forestry and three classes of agriculture). The model's components include twelve production sectors, six consumer groups, a balanced‐budget government sector, and a zero surplus foreign sector. In relative terms, Tax Reform reduces total value added output in land‐using sectors to a greater extent than other sectors in the economy. Experiments are also performed comparing partial and general equilibrium specifications of the economy and the impact of choice of input substitution elasticities.