On the Intergenerational Incidence of Wage and Consumption Taxes
Berthold U. Wigger
University of Mannheim - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
CESifo Working Paper Series No. 388
This paper analyzes the intergenerational incidence of wage and consumption taxes imposed to finance a given amount of public expenditures. It employs a continuous time overlapping generations framework to demonstrate that it essentially hinges on the relationship between the age-earnings and age-consumption profiles of the households which generations bear the major burden of wage respectively consumption taxes. Furthermore, the paper points to some political economy implications of the incidence of wage and consumption taxes.
Number of Pages in PDF File: 28
Keywords: Intergenerational incidence, wage and consumption taxes, life cycle model
JEL Classification: D91, E62, H22working papers series
Date posted: February 19, 2001
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