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The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model, Ben Heijdra, Jenny Ligthart

Label
The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model, Ben Heijdra, Jenny Ligthart
Language
eng
Abstract
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
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model
Nature of contents
dictionaries
Responsibility statement
Ben Heijdra, Jenny Ligthart
Series statement
IMF Working Papers
Contributor
Content
Other version