You can laugh all you want, but that does nothing to explain how Jorgenson calculates embedded taxes and compliance costs. I enjoy your use of big words though. It makes you sound smarter than you are. It should not be that tough. You seem to have no clue what Jorgenson considers embedded taxes and compliance costs. I have seen some caculations for compliance costs, and most have nothing to do with actual costs to businesses.
You can laugh all you want, but that does nothing to explain how Jorgenson calculates embedded taxes and compliance costs.
Jorgenson calculates the effect of change tax rate on prices based on historical record of tax policy changes.
The cost factors are intrinsic to the parametric functions derived from the historic econometric data series.
That is how it is done, Jorgenson doesn't need to explicitly calculate your compliance costs they are implicit to the parametric function coefficients derived from historic relationship intrinsic to the economic data series.
You seem to have no clue what Jorgenson considers embedded taxes and compliance costs.
LOL, it is irralavent as to what Jorgenson considers embedded taxes and compliance costs in the first place they are intrinsic to the econometric parameterization of the J&W IGEM.
Tax revenues collected from business are a matter of federal historical tax data records. The correlated economic data set provides the basis on which to derive the parametric relationships that are manifested by the economy in responce.
In point of fact to solve an econometric series for the effect of tax policy change merely requires the capacity to relate tax policy changes in the historical record to their effects in the markets for each economic sector of interest. Accumulate the results of the econometric functions and solve for prices in relation to original baseline as you change the tax system parameters expressing the policy change one wishes to study.
The costs associated with tax systems are intrinsically included in the empirically derived coefficients of the parametric relationships manifested through the market economy, as price.
I enjoy your use of big words though. It makes you sound smarter than you are. It should not be that tough.
When all else fails resort to personal attack, mockery or ridicule that way you can slide over the issues rather than acknowledge that you have no argument to stand on, and your just spinning your wheels to see if anything can stick.
I have seen some caculations for compliance costs, and most have nothing to do with actual costs to businesses.
I, have seen come calculations for how a ball bounces that have nothing to do with the force of gravity. The ball still bounces when it hits the wall.