Showing 1 - 10 of 1,133
because the small increments in all future tax rates to finance interest payments involves a smaller excess burden than the … single large tax rate increase that would be required to avoid an initial increase in the national debt. This argument … tax rates can be explicitly balanced against the disadvantage of the excess burden that arises from additional debt. The …
Persistent link: https://www.econbiz.de/10013225423
How much and how to tax high-income individuals is at the core of many recent proposals for incremental as well as … fundamental tax reform. This paper critically reviews the economics literature and concludes that the right answer to these … economics concerns such as the process generating income and wealth, and whether wealth individuals' economic activities have …
Persistent link: https://www.econbiz.de/10013221514
tax rate for someone who (due to luck) became rich either five or one year(s) ago. Subjects faced with the five …-year scenario choose a lower tax rate, indicating respect for the more deeply embedded (five-year) reference point. Our results thus …
Persistent link: https://www.econbiz.de/10013026793
Japan+ (Japan plus Korea). The model predicts dramatic increases in tax rates in the U.S., EU, India, and Russia. Indeed … potential for tax avoidance and tax evasion. …
Persistent link: https://www.econbiz.de/10011379852
The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the debt matters. For example, it determines whether news...
Persistent link: https://www.econbiz.de/10013220940
Persistent link: https://www.econbiz.de/10013223567
In the context of several examples of problems associated with present budgetary conventions, I revisit Musgrave's conceptual division of the government's program into Allocation, Distribution and Stabilization Branch subbudgets. I suggest progress towards Musgrave's ideal of a more informative...
Persistent link: https://www.econbiz.de/10013237545
This paper presents a fiscal theory of sovereign risk and default. Under certain monetary-fiscal regimes, the risk of default, and thus the emergence of sovereign risk premia, are inevitable. The paper characterizes the equilibrium processes of the sovereign risk premium and the default rate...
Persistent link: https://www.econbiz.de/10013240546
This paper presents a prototype model for development of the fiscal theory of the price level.' In this simple setting, the fiscal theory's distinctiveness relies upon adoption of a bubble solution, rather than the rational-expectations fundamentals solution. The paper then shows that the fiscal...
Persistent link: https://www.econbiz.de/10013136352
We demonstrate that the Fiscal Theory of the Price Level (FTPL) cannot be used to determine the price level uniquely in the overlapping generations (OLG) model. We provide two examples of OLG models, one with three 3-period lives and one with 62-period lives. Both examples are calibrated to an...
Persistent link: https://www.econbiz.de/10012894996