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Tax structure and welfare in a model of optimal fiscal policy Author info | Abstract | Publisher info | Download info | Related research | Statistics Jan-Ting Guo
Kevin J. Lansing
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A study of the welfare implications of some basic structural features of the U.S. tax code, including the tax deductibility of depreciation and the practice of taxing labor income differently than capital income. The results show that long-run welfare and output can be improved by a policy of accelerated depreciation, whereby the depreciation rate for tax purposes exceeds the rate of economic depreciation.
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Article provided by Federal Reserve Bank of Cleveland in its journal Economic Review .
Volume (Year): (1997)
Issue (Month): Q I ()
Pages: 11-23
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Handle: RePEc:fip:fedcer:y:1997:i:qi:p:11-23Contact details of provider: Postal: 1455 East 6th St., Cleveland OH 44114 Phone: 216.579.2000 Web page: http://www.clevelandfed.org/ More information through EDIRC
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Keywords: Taxation ; Fiscal policy ; References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Baxter, Marianne & King, Robert G, 1993.
"Fiscal Policy in General Equilibrium ,"
American Economic Review ,
American Economic Association, vol. 83(3), pages 315-34, June.
[Downloadable!] (restricted)
Other versions: Aschauer, David Alan, 1989.
"Is public expenditure productive? ,"
Journal of Monetary Economics ,
Elsevier, vol. 23(2), pages 177-200, March.
[Downloadable!] (restricted)
Other versions: Steven P. Cassou & Kevin J. Lansing, 1996.
"Growth effects of a flat tax ,"
Working Paper
9615, Federal Reserve Bank of Cleveland.
[Downloadable!]
Giancarlo Corsetti & Nouriel Roubini, 1996.
"Optimal Government Spending and Taxation in Endgenous Growth Models ,"
NBER Working Papers
5851, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Chamley, Christophe, 1986.
"Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives ,"
Econometrica ,
Econometric Society, vol. 54(3), pages 607-22, May.
[Downloadable!] (restricted)
Cooley, Thomas F & Hansen, Gary D, 1991.
"The Welfare Costs of Moderate Inflations ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 23(3), pages 483-503, August.
[Downloadable!] (restricted)
Other versions:
Cooley, T.F. & Hansen, G.D., 1991.
"The Welfare Costs of Moderate Inflations ,"
RCER Working Papers
266, University of Rochester - Center for Economic Research (RCER).
Cooley, T.F. & Hansen, G.D., 1991.
"The Welfare Costs of Moderate Inflations ,"
Papers
90-04, Rochester, Business - General.
Thomas F. Cooley & Gary D. Hansen, 1991.
"The welfare costs of moderate inflations ,"
Proceedings ,
Federal Reserve Bank of Cleveland, pages 483-518.
Correia, Isabel H., 1996.
"Should capital income be taxed in the steady state? ,"
Journal of Public Economics ,
Elsevier, vol. 60(1), pages 147-151, April.
[Downloadable!] (restricted)
Nicholas Bull, 1993.
"When all the optimal dynamic taxes are zero ,"
Working Paper Series / Economic Activity Section
137, Board of Governors of the Federal Reserve System (U.S.).
Barro, Robert J, 1990.
"Government Spending in a Simple Model of Endogenous Growth ,"
Journal of Political Economy ,
University of Chicago Press, vol. 98(5), pages S103-26, October.
[Downloadable!] (restricted)
Other versions: Ai, Chunrong & Cassou, Steven P, 1995.
"A Normative Analysis of Public Capital ,"
Applied Economics ,
Taylor and Francis Journals, vol. 27(12), pages 1201-09, December.
David Alan Aschauer, 1990.
"Why is infrastructure important? ,"
Conference Series ; [Proceedings] ,
Federal Reserve Bank of Boston, pages 21-68.
[Downloadable!]
Aiyagari, S Rao, 1995.
"Optimal Capital Income Taxation with Incomplete Markets, Borrowing Constraints, and Constant Discounting ,"
Journal of Political Economy ,
University of Chicago Press, vol. 103(6), pages 1158-75, December.
[Downloadable!] (restricted)
Other versions: Christiano, Lawrence J., 1988.
"Why does inventory investment fluctuate so much? ,"
Journal of Monetary Economics ,
Elsevier, vol. 21(2-3), pages 247-280.
[Downloadable!] (restricted)
Chari, V V & Christiano, Lawrence J & Kehoe, Patrick J, 1994.
"Optimal Fiscal Policy in a Business Cycle Model ,"
Journal of Political Economy ,
University of Chicago Press, vol. 102(4), pages 617-52, August.
[Downloadable!] (restricted)
Other versions:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Stephen P. Cassou & Kevin J. Lansing, 2002.
"Growth effects of shifting from a progressive tax system to a flat tax ,"
Working Papers in Applied Economic Theory
2000-15, Federal Reserve Bank of San Francisco.
[Downloadable!]
Gonzalo Fernández de Córdoba & José L. Torres, 2007.
"Fiscal Harmonization in the Presence of Public Inputs ,"
Economic Working Papers at Centro de Estudios Andaluces
E2007/08, Centro de Estudios Andaluces.
[Downloadable!]
Other versions: Baltasar Manzano & Jesús Ruiz, 2004.
"Política fiscal óptima: el estado de la cuestión ,"
Investigaciones Economicas ,
Fundación SEPI, vol. 28(1), pages 5-41, January.
[Downloadable!]
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