Optimal taxation in the context of welfare economics: The case of Turkey

Thesis Type: Doctorate

Institution Of The Thesis: Bursa Uludağ University, Sosyal Bilimler Enstitüsü, Turkey

Approval Date: 2019

Thesis Language: Turkish

Student: Ebru Karaş

Supervisor: UFUK SELEN


Welfare economics, which is included in normative economics, is a science that develops policy proposals that maximize social welfare. Welfare economics considers the factors of efficiency and justice in resource allocation as a determinant of social welfare and explores how efficient resource allocation and fair distribution should be. There is an absolute substitute relationship between efficiency and justice, which are the determinants of social welfare. The policies developed to ensure efficiency lead to justice in the background, while the policies developed for the establishment of justice cause the event to remain in the background. Therefore, welfare economics tries to establish an acceptable balance between these two criteria. Based on welfare economics, the search for equilibrium between efficiency and justice on taxation is systematized in the context of optimal taxation. With optimal taxation, an attempt is tried to make taxation that is appropriate to social preferences. In other words, within the scope of the search for optimal taxation, it is investigated how taxation that is appropriate to the welfare of society should be. The optimal taxation, which tries to provide the best choice for the taxation of society, serves to provide the highest level of social welfare. According to this information, the purpose of the study is the determination of social preferences about taxation and determination of the impact of justice, efficiency and optimal taxation on social welfare. The purpose of the study point of view, research has made based on Turkey. Within the scope of this study, the survey method was used and 1200 samples have been reached. The data obtained from the survey method were included in the statistical analyses with the help of the SPSS package program. In this context, firstly reliability and factor analysis were performed. Then, difference tests, correlation and regression analysis were performed. Based on the analysis, it was concluded that the preference of society for optimal taxation is the taxation based on justice. In addition, it has been determined that social welfare can be increased through optimal taxation.