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On the Specification of Simulation Models for Evaluating Income and Consumption Taxes

  • Charles L. Ballard
Conference paper

Abstract

Economists have emphasized a number of possible advantages of consumption taxation over income taxation.1 One of the most important of these has to do with dynamic efficiency. It is often asserted that increased reliance on consumption taxation would result in welfare gains.2 However, from the perspective of the policymaker, it may not suffice merely to assert that consumption taxation is better. In order to have much chance of overcoming the inertia of the political system, it may be necessary for economists to show that the efficiency gains are, in some sense, large.

Keywords

Labor Supply Capital Stock Saving Rate Welfare Gain Perfect Foresight 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1990

Authors and Affiliations

  • Charles L. Ballard

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