Tax expenditures are generally defined as those government expenditures carried out through tax legislation …, regulations, and practices that reduce or defer taxes for some taxpayers. There is a general concern that the tax expenditures … systems. Many countries in Latin American and a few in the Caribbean already estimate their tax expenditures; but in many …

We characterise optimal tax policies when the government has access to consumption taxation and cannot credibly commit … to future policies. We consider a neoclassical economy where factor income taxation is distortionary within the period … only labour and capital income are taxed, the optimal time-consistent policies with consumption taxation are remarkably …