Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150377
Authors: 
Bassetto, Marco
Year of Publication: 
2014
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 5 [Year:] 2014 [Issue:] 3 [Pages:] 675-704
Abstract: 
The aim of this paper is to study the relationship between the intertemporal behavior of taxes and wealth distribution. The optimal-taxation literature has often concentrated on representative-agent models, in which it is optimal to smooth distortionary taxes. When tax liabilities are unevenly spread in the population, deviations from tax smoothing lead to interest rate changes that redistribute wealth. When a “bad shock” hits the economy, the optimal policy will then call for smaller or larger deficits, depending on the political power of different groups. This effect is particularly relevant in the case of large shocks to government finances, such as wars.
Subjects: 
Optimal taxation
heterogeneous agents
asset prices
distortion
net trade
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Article

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