The dynamic macroeconomic effects of tax policy in an overlapping generations model
AbstractThe paper studies the dynamic allocation effects of tax policy in the context of an overlapping generations model of the Blanchard-Yaari type. The model is extended to allow for endogenous labor supply and three tax instruments: a capital income tax, labor income tax, and consumption tax. Analytical expressions and simple diagrams are used to discuss the impact, transition, and long-run effects of tax policy changes. It is shown that a part of the long-run incidence of capital and consumption taxes falls on capital when householdsâ horizons are finite, whereas labor would fully bear the burden of these taxes in an infinite horizon model.
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 InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-141315.
Date of creation: 2000
Date of revision:
Publication status: Published in Oxford Economic Papers (2000) v.52, p.677-701
Contact details of provider:
Web page: http://www.tilburguniversity.edu/
Other versions of this item:
- Heijdra, Ben J & Ligthart, Jenny E, 2000. "The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 677-701, October.
- Ben J. Heijdra & Johanna Elisabeth Ligthart, 1998. "The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model," IMF Working Papers 98/182, International Monetary Fund.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Heijdra, B.J. & Kooiman, J.P. & Ligthart, J.E., 2004.
"Environmental Quality, the Macroeconomy and Intergenerational Distribution,"
2004-73, Tilburg University, Center for Economic Research.
- Heijdra, Ben J. & Kooiman, Jan Peter & Ligthart, Jenny E., 2006. "Environmental quality, the macroeconomy, and intergenerational distribution," Resource and Energy Economics, Elsevier, vol. 28(1), pages 74-104, January.
- Heijdra, B.J. & Ligthart, J.E., 2004.
"The Macroeconomic Dynamics of Demographic Shocks,"
2004-90, Tilburg University, Center for Economic Research.
- Giovanni Ganelli, 2002.
"Fiscal Policy Rules in an Overlapping Generations Model with Endogenous Labour Supply,"
Trinity Economics Papers
200215, Trinity College Dublin, Department of Economics.
- Ganelli, Giovanni, 2007. "Fiscal policy rules in an overlapping generations model with endogenous labour supply," Journal of Economic Dynamics and Control, Elsevier, vol. 31(3), pages 1015-1036, March.
- Simone Valente, 2005.
"Tax policy and human capital formation with public investment in education,"
CER-ETH Economics working paper series
05/41, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Simone Valente, 2005. "Tax Policy and Human Capital Formation with Public Investment in Education," Journal of Economics, Springer, vol. 86(3), pages 229-258, December.
- Simone Valente, 2005. "Tax Policy and Human Capital Formation with Public Investment in Education," Macroeconomics 0507002, EconWPA.
- Pautrel, Xavier, 2012.
"Environmental Policy, Education And Growth: A Reappraisal When Lifetime Is Finite,"
Cambridge University Press, vol. 16(05), pages 661-685, November.
- Xavier Pautrel, 2008. "Environmental Policy, Education and Growth: A Reappraisal when Lifetime Is Finite," Working Papers 2008.57, Fondazione Eni Enrico Mattei.
- Xavier Pautrel, 2009. "Environmental policy, education and growth: A reappraisal when lifetime is finite," Working Papers hal-00423201, HAL.
- Ascari, Guido & Rankin, Neil, 2007.
"Perpetual youth and endogenous labor supply: A problem and a possible solution,"
Journal of Macroeconomics,
Elsevier, vol. 29(4), pages 708-723, December.
- Ascari, Guido & Rankin, Neil, 2004. "Perpetual youth and endogenous labour supply: a problem and a possible solution," Working Paper Series 0346, European Central Bank.
- Mathieu-Bolh, Nathalie, 2010. "Welfare improving distributionally neutral tax reforms," Economic Modelling, Elsevier, vol. 27(5), pages 1253-1268, September.
- Pautrel, Xavier, 2009. "Pollution and life expectancy: How environmental policy can promote growth," Ecological Economics, Elsevier, vol. 68(4), pages 1040-1051, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Economists Online Support).
If references are entirely missing, you can add them using this form.