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| Paolo M. Panteghini |
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| ''On the equivalence between labor and consumption taxation'' |
| ( 2009, Vol. 29 No.2 ) |
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| This article studies the equivalence between labor and consumption taxes in a stochastic context, where the government can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two-period model we have shown that such taxes let consumers make the same decisions and can finance the same amount of government spending in each period. |
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| Keywords: consumption and labor taxation, equivalence, risk. |
JEL: H4 - Publicly Provided Goods: General
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| Manuscript Received : Mar 09 2009 | | Manuscript Accepted : Apr 17 2009 |
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