Tax Policy, the Macroeconomy, and Intergenerational Distribution

Ben Heijdra () and Jenny Ligthart

IMF Staff Papers, 2002, vol. 49, issue 1, 6

Abstract: The paper studies the dynamic macroeconomic and welfare effects of tax policy in the context of an overlapping-generations model of the Yaari-Blanchard type for a closed economy. The model is extended to allow for endogenous labor supply and three tax instrumentsónamely, a capital tax, labor income tax, and consumption tax. It is shown that labor taxes increase welfare of old generations whereas capital and consumption taxes reduce their welfare. Copyright 2002, International Monetary Fund

JEL-codes: D60 H23 H63 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (6)

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