Leeper, Eric; Yun, Tack - In: International Tax and Public Finance 13 (2006) 4, pp. 373-409
The paper presents the fiscal theory of the price level in a variety of models, including endowment economies with lump-sum taxes and production economies with proportional income taxes. We offer a microeconomic perspective on the fiscal theory by computing a Slutsky-Hicks decomposition of the...