A Note on Interpreting Consumption Tax Incidence in OLG Models: Motives and Obstacles

Niels Kleis Frederiksen*

*Corresponding author for this work

Research output: Working paperResearch

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Abstract

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.
Original languageEnglish
Place of PublicationCopenhagen
PublisherDepartment of Economics. Copenhagen Business School
Number of pages26
Publication statusPublished - 1997
Externally publishedYes
SeriesWorking Paper / Department of Economics. Copenhagen Business School
Number5-98

Cite this

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, No. 5-98