A Dynamic Model of Fiscal Reconstruction

Toshihiro Ihori and Jun-ichi Itaya ()

ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) from Otaru University of Commerce

Abstract: This paper investigates dynamic properties of fiscal reconstruction by analyzing the infinite duration dynamic game among various interest groups with a framework of voluntary acceptance of tax burden. By comparing the first best solution, the open-loop solution under enforceable commitments, and the closed-loop solution without commitment, we explore the free riding aspect of fiscal reconstruction process and investigate the normative role of consumption taxes to internalize the free riding problem. We also derive explicitly the adjustment speeds of fiscal reconstruction under alternative solutions and examine the impact of consumption taxes on the adjustment speed.

Keywords: fiscal reconstruction; dynamic provision; welfare (search for similar items in EconPapers)
Pages: 33 pages
Date: 1997-04
References: Add references at CitEc
Citations:

Published in Discussion paper series (1997), 40: 1-33

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

Related works:
Journal Article: A dynamic model of fiscal reconstruction (2001)
Working Paper: A Dynamic Model of Fiscal Reconstruction (1997)
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: https://EconPapers.repec.org/RePEc:ota:busdis:10252/4227

Access Statistics for this paper

More papers in ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) from Otaru University of Commerce Contact information at EDIRC.
Bibliographic data for series maintained by Miura, Chiho ().