Consumption taxes and precautionary savings

Alexis Anagnostopoulos; Qian Li

doi:10.1016/j.econlet.2013.03.005

Consumption taxes and precautionary savings

Alexis Anagnostopoulos
, Qian Li

Economics

Stony Brook University

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

Financing government spending through lump sum taxes does not distort capital when markets are complete but tends to increase precautionary savings under market incompleteness. Using flat consumption taxes instead leaves precautionary savings unaffected, provided certain conditions on utility are met.

Original language	English
Pages (from-to)	238-242
Number of pages	5
Journal	Economics Letters
Volume	119
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2013.03.005
State	Published - Jun 2013

Keywords

Consumption taxes
Incomplete markets
Precautionary savings

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10.1016/j.econlet.2013.03.005

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title = "Consumption taxes and precautionary savings",

abstract = "Financing government spending through lump sum taxes does not distort capital when markets are complete but tends to increase precautionary savings under market incompleteness. Using flat consumption taxes instead leaves precautionary savings unaffected, provided certain conditions on utility are met.",

keywords = "Consumption taxes, Incomplete markets, Precautionary savings",

author = "Alexis Anagnostopoulos and Qian Li",

year = "2013",

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AU - Anagnostopoulos, Alexis

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KW - Consumption taxes

KW - Incomplete markets

KW - Precautionary savings

UR - https://www.scopus.com/pages/publications/84875784390

U2 - 10.1016/j.econlet.2013.03.005

DO - 10.1016/j.econlet.2013.03.005

M3 - Article

AN - SCOPUS:84875784390

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VL - 119

SP - 238

EP - 242

JO - Economics Letters

JF - Economics Letters

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ER -

Consumption taxes and precautionary savings

Abstract

Keywords

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