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.
|Place of Publication||Copenhagen|
|Publisher||Department of Economics. Copenhagen Business School|
|Number of pages||26|
|Publication status||Published - 1997|
|Series||Working Paper / Department of Economics. Copenhagen Business School|