Intergenerationally Neutral Taxation
AbstractThe paper proposes a basic definition of intergenerational neutrality of fiscal policy in the life cycle model. The requirement of intergenerational neutrality imposes a restriction on the use of fiscal instruments that eliminates any welfare effects from intergenerational redistribution and thereby isolates the price effects of fiscal policy. This restriction endogenously determines a distribution of tax revenues in the form of transfers to young and old agents which ensures intergenerational neutrality. The endogenously determined share of tax revenues rebated to young and old agents is interpreted as the intergenerational incidence of the tax system. If revenues are not refunded to agents according to the intergenerational incidence of taxes, then redistribution in one or the other direction is installed. Hence, the derivation of intergenerationally neutral tax effects provides a benchmark for evaluating the redistributive content of an arbitrary fiscal program.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number 305.
Date of creation: Apr 1991
Date of revision:
Contact details of provider:
Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de
Intergenerational tax incidence; intergenerational redistribution; intergenerationally neutral taxation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christian Keuschnigg & Mirela Keuschnigg & Reinhard Koman & Erik LÃ¼th & Bernd RaffelÃ¼schen, 2000. "Public Debt and Generational Balance in Austria," Empirica, Springer, Springer, vol. 27(3), pages 225-252, September.
- Keuschnigg, Christian & Keuschnigg, Mirela & Koman, Reinhard, 2000. "Public Debt and Generational Balance in Austria Lueth, Erik; Raffelhueschen, Bernd," Economics Series, Institute for Advanced Studies 80, Institute for Advanced Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (BGSE Office).
If references are entirely missing, you can add them using this form.