Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Dallera
Author-Email:
Author-Workplace-Name: Università di Perugia - Dipartimento di Economia
Title: The Italian Tradition in Fiscal Theory: Taxation and Efficiency
Abstract: The paper examines how the theme of ‘efficiency’ evolved over time (1882-1956) in the Italian
tradition of fiscal theory, that keeps pace with the history of modern unitary State, and in the
construction of the method of theoretical analysis of fiscal problems. On reading the works of
some outstanding forerunners in the eighteenth and nineteenth centuries we can see how
schemes of efficient tax design were originated, when theories of tax shifting began to come
out, together with a value theory based on utility and hints of utilitarian welfare economics.
The diffusion of marginalism as a modern logical basis for economics readily matches with liberal
political philosophy, leading to radicalism. In Italy with the introduction of marginalism the
issues of efficiency in taxation are discussed and clarified. Efficiency as minimization of deadweight
loss, as neutrality or uniformity and as a principle linked to equity appears in Italian
economists like Pantaleoni, Barone, Einaudi, De Viti de Marco, Gobbi, Conigliani et al., in discussions
on direct and indirect taxation, on expenditure tax, on taxation and work effort, and on
progressive income taxation. Debates about efficient taxation were developed with a general
equilibrium methodology, keeping into account the effects and productivity of tax revenue. The
role of tax shifting in the analysis was also considered.
In the Italian tradition the idea that it is impossible to know the final effects of taxes and
therefore it is impossible to draw a rational tax design often led to agnostic conclusions. Many
considerations about efficiency rely on the general principle that, given the impossibility of correct
choices by consumers-producers-taxpayers, forced choices and coercion are necessary public
corrective measures.
Classification-JEL: B10, H21
Keywords: Italian tradition; efficiency; taxation
Journal: Il Pensiero Economico Italiano
Pages: 123-158
Volume: 11
Issue: 1
Year: 2003
File-URL: http://www.libraweb.net/articoli.php?chiave=200306301&rivista=63
Handle: RePEc:pei:journl:v:11:y:2003:1:6:p:123-158