ABSTRACT
The study of the incidence of taxation on the distribution of income and consumption is quite central to public economics. In particular, it is interesting to know the shape of the fiscal authority’s option set in income or allocation space before proceeding to the next logical question, viz. which tax rule will actually be selected? These studies are positive or explanatory in nature. They require a full specification of the economy under scrutiny and the political economy question further requires a full specification of the political constitution.
