The Optimal Mix Of Taxes on Money, Consumption and Income

Fiorella De Fiore () and Pedro Teles ()

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: We show that the Friedman rule is optimal in the standard transactions techology monetary model whether the alternative fiscal instrument is a consumption tax, an income tax, or both, and whether taxes are paid with money or not. These results are at odds with recent literature. We show that an incorrect specification of the transactions technology explains the divergence.

JEL-codes: E31 E41 E58 E62 (search for similar items in EconPapers)
Date: 1999
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Related works:
Journal Article: The optimal mix of taxes on money, consumption and income (2003)
Working Paper: The Optimal Mix of Taxes on Money, Consumption and Income (2002)
Working Paper: The optimal mix of taxes on money, consumption and income (2002)
Working Paper: The optimal mix of taxes on money, consumption and income (2002)
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