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The effect of the government temporal horizon on the optimal tax structure

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  • Manuel A. Gómez

    () (Department of Applied Economics II, University of A Coruña)

Abstract

The government temporal horizon is shown to be a key determinant of the optimal tax structure in an endogenous growth model of the US economy. As the temporal horizon lengthens, wage taxation is gradually substituted by consumption taxation. The optimal tax mix depends notably on the leisure specification.

Suggested Citation

  • Manuel A. Gómez, 2004. "The effect of the government temporal horizon on the optimal tax structure," Economics Bulletin, AccessEcon, vol. 8(1), pages 1-8.
  • Handle: RePEc:ebl:ecbull:eb-03h20005
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    References listed on IDEAS

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    More about this item

    Keywords

    Endogenous growth;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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