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 is 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:	2014
Authors:	Ball, Christopher ; Creedy, John
Published in:	New Zealand Economic Papers. - Taylor & Francis Journals, ISSN 0077-9954. - Vol. 48.2014, 2, p. 240-253
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010826035