On the time-consistency of optimal capital taxes

• 成果类型: Article
• 署名作者: Dominguez, Begona
• 署名单位: University of Auckland
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.11.005
• 发表日期: 2007
• 页码: 686-705
• 关键词: debt management; optimal taxation; Time-consistency

摘要

This paper studies the time-inconsistency problem of optimal capital taxes. In the absence of full-commitment, it is well known that debt restructuring cannot solve the time-inconsistency problem for economies with a private stock of capital. We re-examine this result by exploring the role of institutional delays in government policies. We show that, when the implementation of government policy requires time, debt restructuring can enforce commitment to the optimal capital taxes. We conclude that, since institutional delays characterize democratic decision making, the time-inconsistency problem of capital taxes is not so severe. (c) 2007 Published by Elsevier B.V.