Consumption taxes and precautionary savings

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 119
Issue: 3
Pages: 238-242

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Financing government spending through lump sum taxes does not distort capital when markets are complete but tends to increase precautionary savings under market incompleteness. Using flat consumption taxes instead leaves precautionary savings unaffected, provided certain conditions on utility are met.

Technical Details

RePEc Handle
repec:eee:ecolet:v:119:y:2013:i:3:p:238-242
Journal Field
General
Author Count
2
Added to Database
2026-01-24