The optimal mix of taxes on money, consumption and income

• 成果类型: Article
• 署名作者: De Fiore, F; Teles, P
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Chicago; European Central Bank; Centre for Economic Policy Research - UK; Banco de Portugal; Universidade Catolica Portuguesa
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00034-5
• 发表日期: 2003
• 页码: 871-887
• 关键词: Friedman rule; inflation tax; Transactions technology

摘要

We determine the optimal combination of taxes on money, consumption and income in transactions technology models where exogenous government expenditures must be financed with distortionary taxes. We show that the optimal policy does not tax money, regardless of whether the government can use as alternative fiscal instruments an income tax, a consumption tax, or the two taxes jointly. These results are at odds with recent literature. We argue that the reason for this divergence is an inappropriate specification of the transactions technology adopted in the literature. (C) 2003 Elsevier Science B.V. All rights reserved.