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Les effets à long terme de différentes règles de financement du gouvernement

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  • Masson, Paul R.

    (Banque du Canada)

Abstract

The purpose of this paper is to quantify the substitution effects brought about by tax rate changes and to see to what extent they modify the neutrality of the financing choice facing the government, that is, tax increases on borrowing. An intertemporal utility maximisation model of household behaviour is estimated over the period 1958-1980, where utility is a function of both consumption and leisure. The model is then used to simulate a temporary increase in government transfer payments to households, financed either by taxes or by bond issues. The simulation results indicate that the method of financing can have an important effect even in a classical equilibrium model, given the estimated elasticity of substitution between work and leisure. Le but de ce texte est d’essayer de quantifier les effets de substitution entre travail et loisir induits par les changements d’impôts, et de voir combien ces effets modifient la neutralité du choix de financement du gouvernement. Un modèle basé sur la maximisation de l’utilité de la consommation et du loisir est estimé sur la période 1958 à 1980. Ce modèle sert ensuite à faire des simulations d’une augmentation temporaire des transferts, financée soit par les impôts, soit par les obligations. Les simulations indiquent que le mode de financement peut avoir un effet important sur le comportement de l’économie.

Suggested Citation

  • Masson, Paul R., 1983. "Les effets à long terme de différentes règles de financement du gouvernement," L'Actualité Economique, Société Canadienne de Science Economique, vol. 59(2), pages 266-282, juin.
  • Handle: RePEc:ris:actuec:v:59:y:1983:i:2:p:266-282
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    4. Willem H. Buiter & James Tobin, 1978. "Debt Neutrality: A Brief Review of Doctrine and Evidence," Cowles Foundation Discussion Papers 497, Cowles Foundation for Research in Economics, Yale University.
    5. Carmichael, Jeffrey, 1982. "On Barro's Theorem of Debt Neutrality: The Irrelevance of Net Wealth," American Economic Review, American Economic Association, vol. 72(1), pages 202-213, March.
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