This note discusses the generational incidence of consumption taxes in an OLG framework. The objective is to highlight the channels through which an increase in, e.g., a VAT redistributes income across generations. It turns out that with labor supply exogenous VAT incidence is very similar to the impact of a PAYG pension system or government debt.
|Udgiver||Department of Economics. Copenhagen Business School|
|Status||Udgivet - 1997|
|Navn||Working Paper / Department of Economics. Copenhagen Business School|
Kleis Frederiksen, N. (1997). A Note on Interpreting Consumption Tax Incidence in OLG Models: Motives and Obstacles. Department of Economics. Copenhagen Business School. Working Paper / Department of Economics. Copenhagen Business School, Nr. 5-98