On the equivalence between labor and consumption taxation

Paolo Panteghini

Economics Bulletin, 2009, vol. 29, issue 2, 622-629

Abstract: This article studies the equivalence between labor and consumption taxes in a stochastic context, where the government can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two-period model we have shown that such taxes let consumers make the same decisions and can finance the same amount of government spending in each period.

Keywords: consumption and labor taxation; equivalence; risk. (search for similar items in EconPapers)
JEL-codes: H4 (search for similar items in EconPapers)
Date: 2009-04-17
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Citations: View citations in EconPapers (9)

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Related works:
Working Paper: On the Equivalence between Labor and Consumption Taxation (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-09-00131

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