Abstract
In this paper, we have reexamined the analysis of taxes and subsidies in an open static Leontief model initiated by Metzler (1951), resorting mainly to the properties of the inverse of an M-matrix, and filled small apertures by arguing how to determine the sectors to be taxed and subsidized and the range of tax rate compatible with the nonnegativity of the equilibrium post-tax-subsidy prices and the stability of the dynamic process of the price formulation in the case of ad valorem tax.
