Citanna, A. and Tvede, M. orcid.org/0000-0003-0566-7026 (2024) Do taxspots matter?: A study of optimal tax uncertainty. Journal of Economic Theory. 105884. ISSN 0022-0531
Abstract
Should the government run an uncertain fiscal policy to finance its liabilities? We call the resulting uncertainty taxspots, and study conditions that make taxspots optimal, and recurrent, in standard Ramsey problems. We show that prudence and market incompleteness play a role in sustaining taxspots, and that equal-treatment randomizations can be decentralized via taxspots even in the absence of financial markets.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024 Elsevier Inc. This is an author produced version of a paper subsequently published in Journal of Economic Theory. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Ramsey taxation; Sunspots; Lottery equilibrium |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 30 Jul 2024 13:34 |
Last Modified: | 30 Jul 2024 13:34 |
Status: | Published |
Publisher: | Elsevier BV |
Refereed: | Yes |
Identification Number: | 10.1016/j.jet.2024.105884 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:215514 |
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