Economics and Finance Faculty Publications and Presentations

Tax smoothing with immigration in an overlapping generations economy

Document Type

Article

Publication Date

3-2019

Abstract

Immigration policy in an overlapping generations economy is politically determined in response to government spending shocks, where the government finances its spending with proportional income taxes and is subject to a balanced budget. The young cohort is always the majority and dictates policy. The equilibrium Markovian strategy allows immigrants when the spending shock is above some threshold and this implies a particular form of tax smoothing.

Comments

© 2018 Informa UK Limited, trading as Taylor & Francis Group.

https://www.tandfonline.com/share/8E4ENHTKKDX8ASHYD68C?target=10.1080/13504851.2018.1486975

Publication Title

Applied Economics Letters

DOI

https://doi.org/10.1080/13504851.2018.1486975

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