What type of analysis focuses on the item being taxed without considering the broader economic context?

Partial equilibrium analysis is a focused approach that examines the effects of a policy or economic event on a specific market or item, without taking into account the broader economic context or interactions with other markets. This type of analysis is useful for isolating the effects of a particular tax or economic decision on the supply and demand for a specific good or service.

In the context of taxation, it allows policymakers to understand the implications of a tax on the item in question, such as how it may affect the price consumers pay, the quantity sold, and the revenue generated from the tax. By concentrating solely on the item being taxed, partial equilibrium analysis simplifies the complexities of the full economic environment, allowing for a clearer view of immediate outcomes.

Other types of analysis, such as general equilibrium analysis, look at how changes in one market can affect other markets and the overall economy, while dynamic and static equilibrium analyses focus on changes over time and the comparative statics of economic variables, respectively. These broader perspectives do not focus narrowly on the specific item being taxed, making them less applicable to the question at hand.