Flypaper theory (economics)
id:
flypaper-theory-economics-284-6094856
title:
Flypaper theory (economics)
text:
The flypaper theory of tax incidence is a pejorative term used by economists to describe the assumption that the burden of a tax, like a fly on flypaper, sticks wherever it first lands. Economists point out several flaws with the assumption: it ignores the elasticity of goods; and
it ignores the ability of producers to shift the cost of the tax onto consumers. For example, consider a tax levied on a luxury item such as jewelry. Such a tax, while intended to target the wealthy, may not actually a
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wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Flypaper_theory_(economics)
date created:
date modified:
2019-02-16T12:18:33Z
main entity:
{"identifier":"Q118895913","url":"https://www.wikidata.org/entity/Q118895913"}
image:
fields total:
13
integrity:
13