haku: @author Velasco, A. / yhteensä: 10
viite: 8 / 10
| Tekijä: | Benhabib, J. Velasco, A. |
| Otsikko: | On the optimal and best sustainable taxes in an open economy |
| Lehti: | European Economic Review
1996 : VOL. 40:1, p. 135-154 |
| Asiasana: | OPTIMIZATION OPEN ECONOMY GOVERNMENT |
| Kieli: | eng |
| Tiivistelmä: | Open economy in which government-provided services that enter the domestic production function must be financed with distortionary taxes are studied. Focus is on the optimal size of the government and on the associated optimal tax rate. This tax rate is time inconsistent, and under discretion the government implements a tax that maximizes each period's output - which may be higher or lower than the first-best rate, depending on whether the elasticity of substitution in production btw. private and public inputs is sustained through trigger strategies. This best sustainable sequence of tax rates is constant, and lies btw. the first-best and discretionary extremes. |
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