Howitt, Peter; Sinn, Hans-Werner - In: American Economic Review 79 (1989) 1, pp. 106-24
This paper analyzes the intertemporal allocation effects of anticipated tax rate changes, reconsidering the recommendations of the Meade Committee in a perfect foresight general equilibrium model of economic growth. It is shown that the R-base (or consumption) tax can be more distortionary than...