Tax Policy with Uncertain Future Costs: Some Simple Models

This paper considers the extent to which the standard argument, that the disproportionate excess burden of taxation suggests the use of tax-smoothing in the face of future cost increases, is modified by uncertainty regarding the future. The role of uncertainty and risk aversion are examined using several highly simplified models involving a possible future contingency requiring an increase in tax-financed expenditure.

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Year of publication:	2013
Authors:	Ball, Christopher ; Creedy, John
Institutions:	Victoria Business School, Victoria University of Wellington
Subject:	Tax smoothing \| Uncertainty \| Risk \| Excess burden

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Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 06/2013 Number 2839
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010904159