Estimating Taxation Rate Based On Blanchard’S Approach
AbstractEstimating an optimal taxation rate represents a much debated topic. But, embodying the perfect market conditions, reaching out the equality between marginal rates of substitutions, in order to estimate the optimal taxation rate, is impossible to fulfill by any economy. Therefore, it could be considered as being a more suitable approach for any practitioner, to estimate the taxation rate following Blanchard’s approach. The findings of this paper reveal that during 2000-2007 Romanian government should had imposed some fiscal adjustment measures in order to assess sustainable fiscal policy on long term.
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Bibliographic InfoArticle provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.
Volume (Year): 12(541)(supplement) (2009)
Issue (Month): 12(541)(supplement) (December)
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fiscal sustainability; intertemporal budget constraint; fiscal adjustment; effective taxation rate; fiscal policy.;
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