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Tax law is often uncertain. In particular, the use of tax shelters tends to be in the “grey area” between illegal tax evasion and legal tax avoidance. In this paper I show that uncertainty in tax law can help achieve higher efficiency than allowing or disallowing a tax shelter with...
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This paper investigates optimal tax policy when economic conditions are uncertain, creating risk in tax revenues. Optimal taxation with uncertainty balances costs from volatility and deadweight loss. Tax policy affects volatility through two channels; spreading risk between public and private...
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In this paper we examine how model uncertainty due to the preference for robustness (RB) affects optimal taxation and the evolution of debt in the Barro tax-smoothing model (1979). We first study how the government spending shocks are absorbed in the short run by varying taxes or through debt...
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Recommended readings (Machine generated): 1. Daniel Bernoulli (1954), 'Exposition of a New Theory on the Measurement of … Joseph Stiglitz (1970), 'Increasing Risk: I. A Definition', Journal of Economic Theory, 2 (3), September, 225-43 -- 5. Paul A …-August, 623-48 -- 14. Robert Wilson (1968), 'The Theory of Syndicates', Econometrica, 36 (1), January, 119-32 -- 15. Robert M …
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