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The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model [electronic resource] Heijdra, Ben J..

Author/Creator:
Heijdra, Ben J.
Publication:
Washington, D.C. : International Monetary Fund, 1998.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 98/182.
IMF Working Papers; Working Paper No. 98/182
Format/Description:
Government document
Book
1 online resource (29 p.)
Local subjects:
Aggregate consumption.
Aggregate demand.
Burden of taxes.
Capital accumulation.
Capital income.
Capital income taxation.
Capital stock.
Capital tax.
Capital taxation.
Capital taxes.
Consumption growth.
Consumption tax.
Consumption tax rate.
Consumption taxes.
Current consumption.
Current income.
Distribution of income.
Effects of tax policy.
Effects of taxes.
Environmental tax.
Future consumption.
General equilibrium.
Household consumption.
Household wealth.
Income effect.
Income taxes.
Labor income.
Labor taxes.
Level of consumption.
Marginal propensity to consume.
Private consumption.
Proportional tax.
Tax change.
Tax changes.
Tax incidence.
Tax increases.
Tax instruments.
Tax measures.
Tax on capital.
Tax return.
Total household wealth.
Summary:
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.
Notes:
Description based on print version record.
Contributor:
Heijdra, Ben J.
Ligthart, Johanna Elisabeth.
Other format:
Print Version:
ISBN:
1451859244:
9781451859249
ISSN:
1018-5941
Publisher Number:
10.5089/9781451859249.001
Access Restriction:
Restricted for use by site license.
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