1. In a general equilibrium model, a tax on a single factor in
its use only in a particular sector can affect returns to all
factors in all sectors.
2. Due to capitalization, the burden of future taxes may be
borne by current owners of an inelastically‑supplied, durable
commodity such as land.
3. Partial factor taxes are levied on an input in only some of
its uses.
1. In a general equilibrium model, a tax on a single factor in its use only in a particular sector can affect returns to
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