THE NONEQUIVALENCE BETWEEN DEFICITS AND DISTORTIONARY TAXATION

• 成果类型: Article
• 署名作者: TROSTEL, PA
• 署名单位: North Carolina State University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(93)90045-H
• 发表日期: 1993
• 页码: 207-227
• 关键词: Ricardian equivalence; DEFICIT FINANCE; intertemporal substitution

摘要

This paper examines how relaxing the assumption of lump-sum taxation affects the Ricardian equivalence theorem. In a model with income taxation instead of lump-sum taxation structural deficit finance causes Keynesian-like effects even though government bonds are not perceived as net wealth. A temporary substitution of debt for taxation significantly increases consumption, work, and output initially - the same effects as in the Keynesian case where the implied future tax liability is not perceived. But in contrast to the Keynesian case, investment also increases initially. In the long run, however, deficit finance significantly reduces investment, work, output, and consumption.