Tax Policy with Uncertain Future Costs: Some Simple Models

Christopher Ball and John Creedy

No 18781, Working Paper Series from Victoria University of Wellington, Chair in Public Finance

Abstract: This paper considers the extent to which the standard argument, that the disproportionate excess burden of taxation suggests the use of tax-smoothing in the face of future cost increases, is modified by uncertainty regarding the future. The role of uncertainty and risk aversion are examined using several highly simplified models involving a possible future contingency requiring an increase in tax-financed expenditure.

Keywords: Tax smoothing; Uncertainty; Risk; Excess burden (search for similar items in EconPapers)
Date: 2013
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https://ir.wgtn.ac.nz/handle/123456789/18781

Related works:
Journal Article: Tax policy with uncertain future costs: Some simple models (2014)
Working Paper: Tax Policy with Uncertain Future Costs: Some Simple Models (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwcpf:18781

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