Boccanfuso, Jérémy; Ferey, Antoine - 2022 - This version: August 2021
This paper shows that agent inattention to taxes generates a time-inconsistency problem in the choice of tax policy. In … equilibrium, inattention leads to inefficiently high tax rates and a taxation bias emerges. Combining structural and sufficient …. Overall, our findings shed new light on the policy and welfare implications of inattention and misperceptions. …