Inflation Taxation and Welfare with Externalities and Leisure
在新古典增长模型中引入休闲、生产外部性和货币效用，分析用通胀税替代消费税对资源配置和福利的影响，发现外部性强度和跨期替代弹性决定净福利效应。
This paper examines how inflation taxation affects resource allocation and welfare in a neoclassical growth model with leisure, a production externality and money in the utility function. Switching from consumption taxation to inflation taxation to finance government spending reduces real money balances relative to income, but increases consumption, labor, capital, and output. The net welfare effect of this switch depends crucially on the strength of the externality and on the elasticity of intertemporal substitution. While it is always negative without the externality, it is likely to be positive with a strong externality and elastic intertemporal substitution.