Do anticipated tax changes matter? Further evidence from the United Kingdom
AbstractThis paper provides some evidence against the rational expectations-permanent income model of consumption behaviour and the Ricardian Equivalence proposition by testing the responsiveness of spending to the implementation of pre-announced changes in income tax. Extending the work of Summer (1991), a long series of recurrent episodes of this kind is for the U.K (1960-1990) is examined. It is found that consumption expenditure strongly reacts to (pre-announced) fiscally-induced changes in current disposable income. This effect is due to the semi-durable and durable components of spending.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Ricerche Economiche.
Volume (Year): 48 (1994)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622941
Other versions of this item:
- F Bagliano, 1993. "Do Anticipated Tax Changes Matter? Further Evidence from the United Kingdom," CEP Discussion Papers dp0123, Centre for Economic Performance, LSE.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Alejandro López & Martha Misas & Hugo Oliveros, .
"Understanding Consumption in Colombia,"
Borradores de Economia
058, Banco de la Republica de Colombia.
If references are entirely missing, you can add them using this form.