01792cas a2200253 a 4500 AALejournalIMF007316 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451954548 1018-5941 BD-DhAAL BD-DhAAL Slemrod, Joel. The Costs of Taxation and the Marginal Cost of Funds / Joel Slemrod, Shlomo Yitzhaki. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students It is argued that taxation causes three kinds of deadweight losses and two types of direct costs. The deadweight losses arise from substitution, evasion, and avoidance activities while the direct costs are administrative and compliance costs. Some of these social costs tend to be discontinuous and/or nonconvex. Because most models of taxation ignore some components of the social costs of taxation, their conclusions cannot be of a general nature. An alternative approach to policy evaluation is to rely on a marginal efficiency cost of funds rule which can indicate appropriate directions of reforms. The paper discusses its merits, applicability, and limitations, as well as its relationship to other concepts. Mode of access: Internet Yitzhaki, Shlomo. IMF Working Papers; Working Paper ; No. 1995/083 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/083/001.1995.issue-083-en.xml IMF e-Library