Balanced Budget Rules and Aggregate Instability: The Role of Consumption Taxes
研究在平衡预算规则下，用消费税替代劳动所得税能否减少经济不稳定性。结果表明，消费税能确保经济稳定，而混合使用两种税会缩小不确定性范围，为以消费税替代资本税提供了新论据。
It is known that in a real business cycle model with constant returns to scale and a balanced budget fiscal policy rule, steady state indeterminacy may arise due to endogenous labour income tax rates. This article shows that when the government finances its expenditures via an endogenous consumption tax instead, a steady state is always saddle-path stable. Consequently, combining income taxes with consumption taxes makes the ranges of indeterminacy shrink, thus reducing the possibility of aggregate instability. From a policy perspective, the results provide an additional argument in favour of consumption taxes in place of capital taxes. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.