search query: @indexterm taxation / total: 1872
reference: 628 / 1872
| Author: | Na, S. |
| Title: | The possibility of a pareto-improving transition in optimal tax theory |
| Journal: | Journal of Economic Research
1998 : NOV, VOL. 3:2, p. 149-184 |
| Index terms: | RESEARCH TAXATION THEORIES |
| Language: | eng |
| Abstract: | This paper examines a Pareto-improving transition to an optimal tax steady state from a given non-optimal tax steady state. In contrast to the existing view on this issue, it is shown that, under certain conditions and provided that debt policy is available, the Pareto-improving transition to the desired optimum is always possible. In order to do this, the author provides a dynamic general equilibrium model of overlapping generations, in which an expenditure tax is always optimal in a steady state, but in which the economy is initially in a non-optimal income tax steady state. |
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