2. Review of literature

2.1 The incidence of sin taxes

2.2 The incidence of tax on pure rent in a small open economy

2.3 Tax incidence in bargaining

2.4 The general equilibrium incidence of environmental taxes

2.5 The tax system incidence on unemployment: A country specific analysis for the OECD economies:

2.6 Tax and subsidy incidence equivalence theories: experimental evidence from competitive markets

2.7 Tax incidence under oligopoly: a comparison of policy approaches

2.8 The incidence of income tax on wages and labour supply

2.9 The incidence of personal income taxation: evidence from the tax reform act of 1986:

2.10 Tax incidence when individuals are time-inconsistent: the case of cigarette excise tax

3. Conclusion

References 1. Introduction:

Government generally collect taxes to generate revenue and question arise here is that after imposition of taxation, which group will bear the tax burden. After implementation of tax, there would be the division of tax burden between byres and sellers which is known as tax incidence. Tax incidence is linked to the price elasticity of demand and supply. If supply is more elastic than demand then the tax burden falls upon the buyers and when the demand is more elastic than supply then the producers will bear the cost of the tax.
Tax incidence is basically the analysis of the effect of taxation on the distribution of economic welfare. Tax incidence expose that which group either consumer or producer is going to pay the price of new tax and it falls mostly on the group that has the inelastic price quantity or respond least to the price. Tax incidence or the tax burden does not depend on that where the revenue is collected but it depends upon the elasticity of demand and supply. The purpose of this review on the literature is that to