Economics at your fingertips  

Incidence of Consumption Tax and Tax Treatment of Elderly Care Expenditures

Masatoshi Yoshida and Takeshi Kenmochi

Public Finance = Finances publiques, 1999, vol. 54, issue 1-2, 57-72

Abstract: This paper explores the differential incidence of consumption-tax policy in an overlapping generations model with a market-produced elderly care service. When a child cares about the welfare of his parents, the incidence depends on the tax treatment of care expenditure. If this expenditure is tax-free, capital accumulation increases so that the interest rate decreases. The young generation profits though it bears a heavier tax burden than the old. The opposite incidence is possible, too. The paper also examines whether or not these results continue to hold in an alternative model where the child cares about the home-produced service itself.

Date: 1999
References: Add references at CitEc
Citations Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Public Finance = Finances publiques
Series data maintained by Christopher F. Baum ().

Page updated 2017-09-29
Handle: RePEc:pfi:pubfin:v:54:y:1999:i:1-2:p:57-72