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
Publisher:	Wellington : New Zealand Government, The Treasury
Subject:	Steuerpolitik \| Entscheidung unter Unsicherheit \| Risikoaversion \| Intertemporale Entscheidung \| Excess Burden \| Optimale Besteuerung \| Theorie \| Tax Smoothing \| Uncertainty \| Risk Aversion

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Series:	New Zealand Treasury Working Paper ; 13/07
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
ISBN:	978-0-478-40304-6
Other identifiers:	746051905 [GVK] hdl:10419/205631 [Handle] RePEc:nzt:nztwps:13/07 [RePEc]
Classification:	H20 - Taxation, Subsidies, and Revenue. General ; D81 - Criteria for Decision-Making under Risk and Uncertainty ; D90 - Intertemporal Choice and Growth. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10012115643