Abstract
In the theory of taxation (as in many parts of economics) it is not the amount of, say, income that counts, but its utility. If u is the utility function, the utility of the gross income x is u(x) and that of the net income y (after taxes) is u(y) then the (absolute) sacrifice under taxation is
u(x) — u(y).
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© 1987 D. Reidel Publishing Company, Dordrecht, Holland
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Aczél, J. (1987). Scale-invariant equal sacrifice in taxation. The linear-affine functional equation. Multiplicative and logarithmic functions. In: A Short Course on Functional Equations. Theory and Decision Library, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3749-9_3
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DOI: https://doi.org/10.1007/978-94-009-3749-9_3
Publisher Name: Springer, Dordrecht
Print ISBN: 978-90-277-2377-2
Online ISBN: 978-94-009-3749-9
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