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Optimal Taxation and Optimal Tax Systems

Slemrod, Joel - 1989

The theory of optimal taxation has , for the pas two decades , been the reigning normative approach of taxation. This … paper argues that , in its current state, optimal tax theory is incomplete as a guide to action concerning many critical … paper first presents the three cornerstone propositions of optimal tax theory, and then it discusses the influence of these …

Persistent link: https://www.econbiz.de/10012476010

Comparing Average and Marginal Tax Rates Under the FairTax and the Current System of Federal Taxation

Kotlikoff, Laurence J. - 2005

This paper compares marginal and average tax rates on working and saving under our current federal tax system with those that would arise under a federal retail sales tax, specifically the FairTax. The FairTax would replace the personal income, corporate income, payroll, and estate and gift...

Persistent link: https://www.econbiz.de/10012466840

Taxation

Kaplow, Louis - 2006

This Handbook entry presents a conceptual, normative overview of the subject of taxation. It emphasizes the relationships among the main functions of taxation -- notably, raising revenue, redistributing income, and correcting externalities -- and the mapping between these functions and various...

Persistent link: https://www.econbiz.de/10012466608

"Getting the Biggest Bang for the Buck in Fiscal Policy"

Kimball, Miles S. - 2012

In ranking fiscal stimulus programs, it is useful to focus on the ratio of extra aggregate demand to extra national debt that results. This note argues that (because of repayment after the end of a recession) "national lines of credit"-that is, government-issued credit cards with countercyclical...

Persistent link: https://www.econbiz.de/10012460517

Fiscal Devaluations

Farhi, Emmanuel - 2011

We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under...

Persistent link: https://www.econbiz.de/10012460995

Fiscal Policy in Debt Constrained Economies

Aguiar, Mark A. - 2011

We study optimal fiscal policy in a small open economy (SOE) with sovereign and private default risk. The SOE's government uses linear taxation to fund exogenous expenditures and uses public debt to inter-temporally allocate tax distortions. We characterize a class of environments in which the...

Persistent link: https://www.econbiz.de/10012461202

Behavioral Economics and Tax Policy

Congdon, William - 2009

Behavioral economics is changing our understanding of how economic policy operates, including tax policy. In this paper, we consider some implications of behavioral economics for tax policy, such as how it changes our understanding of the welfare consequences of taxation, the relative...

Persistent link: https://www.econbiz.de/10012463322

The Politics of 1992 : Fiscal Policy and European Integration

Persson, Torsten - 1990

The internal market in Europe will greatly increase the international mobility of resources. How will this affect fiscal policy in different countries? The first part of the paper considers taxation of capital in a two country model, where a democratically chosen government in each country...

Persistent link: https://www.econbiz.de/10012475567

Structural and Stabilization Aspects of Fiscal and Financial Policy in the Dependent Economy

Buiter, Willem H. - 1986

The paper considers the response of a small, open dependent economy to a variety of fiscal and financial shocks as well as the influence of alternative budget balancing rules on the response of the system to such external shocks as a change in the world interest rate. The approach allows for...

Persistent link: https://www.econbiz.de/10012477047

Fiscal Policy as a Stabilization Tool. The Case for Quasi-Automatic Stabilizers, With an Application to the VAT

Blanchard, Olivier - National Bureau of Economic Research - 2025

Most of the focus of recent stabilization policy research and practice has been on monetary rather than fiscal policy. This paper explores how, given the limits on monetary policy, fiscal policy could play a larger role. It explores the use of quasi-automatic stabilizers, i.e. changes in taxes...

Persistent link: https://www.econbiz.de/10015398150