Fiscal policy and saving under distortionary taxation
Article Abstract:
An examination of Israeli economic data showed how fiscal variables can affect the savings rate equation in a small open economy. Distortionary income-tax policies were shown to have negative partial effects on the whole model, in contrast with the Keynesian framework that posits a positive comovement in both the income tax rate and national savings rate. This is due to the observation that a higher income tax rate signals a lower tax rate in the future due to intertemporal budget constraint. Other factors that enhanced national savings were higher consumption tax and unilateral transfers to the public sector of government funds.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1998
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Endogenous capital utilization, investor's effort, and optimal fiscal policy
Article Abstract:
Previous research on optimal capital income taxation has operated on the principles that utilization rates of capital are fixed and that the effectiveness of an investment is independent of the investor's effort. However, further study reveals that these assumptions are not valid and that distortions caused by implicit levies on capital through either capital income taxes or investment tax credits have tremendous ramifications on the structure and consistency of optimal tax policy.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1995
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Fiscal shocks and fiscal risk management
Article Abstract:
Fiscal shocks and fiscal risk management in the Canadian federal surplus are considered, in terms of variations that a replicated by a combination of returns and recent debt rises.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2001
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