Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/26638 
Year of Publication: 
2009
Series/Report no.: 
CESifo Working Paper No. 2593
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This article studies the equivalence between labor and consumption taxes in a stochastic context, where the government can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two-period model we show that such taxes let consumers make the same decisions, and can finance the same amount of government spending in each period.
Subjects: 
Consumption and labor taxation
equivalence
risk
JEL: 
H24
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
184.87 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.