The effect of the government temporal horizon on the optimal tax structure

Manuel Gómez

Economics Bulletin, 2004, vol. 8, issue 1, 1-8

Abstract: The government temporal horizon is shown to be a key determinant of the optimal tax structure in an endogenous growth model of the US economy. As the temporal horizon lengthens, wage taxation is gradually substituted by consumption taxation. The optimal tax mix depends notably on the leisure specification.

Keywords: Endogenous; growth (search for similar items in EconPapers)
JEL-codes: H2 O4 (search for similar items in EconPapers)
Date: 2004-01-05
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