SOME UNPLEASANT SUPPLY-SIDE ARITHMETIC

• 成果类型: Article
• 署名作者: DOTSEY, M
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(94)90041-8
• 发表日期: 1994
• 页码: 507-524
• 关键词: Fiscal policy

摘要

Existing macroeconomic theory predicts that cuts in the distortionary tax rate on capital financed by increases in government debt lead to increases in investment and output. These results are generally obtained under the unrealistic assumption that government debt is financed by nondistorting future fiscal policy. However, when current government deficits are financed by future distortionary taxation this paper shows that lower tax rates and higher deficits lead to reductions in investment and output.