The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model /

The paper studies the dynamic allocation effects of tax policy in the context of an overlapping generations model of the Blanchard-Yaari type. The model is extended to allow for endogenous labor supply and three tax instruments: a capital income tax, labor income tax, and consumption tax. Analytical...

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Bibliografische gegevens
Hoofdauteur: Heijdra, Ben
Andere auteurs: Ligthart, Jenny
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 1998.
Reeks:IMF Working Papers; Working Paper ; No. 1998/182
Online toegang:Full text available on IMF
Omschrijving
Samenvatting:The paper studies the dynamic allocation effects of tax policy in the context of an overlapping generations model of the Blanchard-Yaari type. The model is extended to allow for endogenous labor supply and three tax instruments: a capital income tax, labor income tax, and consumption tax. Analytical expressions and simple diagrams are used to discuss the impact, transition, and long-run effects of tax policy changes. It is shown that a part of the long-run incidence of capital and consumption taxes falls on capital when households' horizons are finite, whereas labor would fully bear the burden of these taxes in an infinite horizon model.
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Fysieke beschrijving:1 online resource (29 pages)
Formaat:Mode of access: Internet
ISSN:1018-5941
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