
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.
Recommended Citation
Lopez-Velasco, A.R., 2019. Tax smoothing with immigration in an overlapping generations economy. Applied Economics Letters, 26(6), pp.460-464. https://doi.org/10.1080/13504851.2018.1486975
Publication Title
Applied Economics Letters
DOI
https://doi.org/10.1080/13504851.2018.1486975
Comments
© 2018 Informa UK Limited, trading as Taylor & Francis Group.
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