Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152569
Authors: 
De Fiore, Fiorella
Teles, Pedro
Year of Publication: 
2002
Series/Report no.: 
ECB Working Paper 135
Abstract: 
In this paper we determine the optimal combination of taxes on money, consumption and income in transaction technology models. We show that the optimal policy does not tax money, regardless of whether the government can use the income tax, the consumption tax, or the two taxes jointly. These results are at odds with recent literature. We argue that the reason for this divergence is an inappropriate specification of the transaction technology adopted in the literature.
JEL: 
E31
E41
E58
E62
Document Type: 
Working Paper

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