On the equivalence between labor and consumption taxation

This article studies the equivalence between labor and consumption taxes in a stochastic context, where the government can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two-period model we have shown that such taxes let consumers make the same decisions and can finance the same amount of government spending in each period.

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Year of publication:	2009
Authors:	Panteghini, Paolo M.
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 2, p. 622-629
Publisher:	AccessEcon
Subject:	consumption and labor taxation \| equivalence \| risk

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	H4 - Publicly Provided Goods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008563028