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Structural breaks, debt limits and the tax smoothing hypothesis: theory and evidence from the OECD countries

Empirical Economics, 2019
In this paper, we consider the Aiyagari et al. (J Polit Econ 110(6):1220–1254, 2002) general equilibrium model of optimal taxation and show that the optimal tax rate does not necessarily imply tax smoothing, as it may depend on past government debt and can also shift with news about future changes in fiscal policy.
Constantine Angyridis, Leo Michelis
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THE TAX SMOOTHING HYPOTHESIS: SOME AUSTRALIAN EMPIRICAL RESULTS

Australian Economic Papers, 1986
The central proposition of tax-smoothing theory is that intertemporally efficient marginal-tax rates will be ex ante uniform over time. Australian postwar tax rates, comprising annual data spanning the period 1949/50 to 1984/85, are found to be random walks.
KINGSTON, GEOFFREY H., LAYTON, ALLAN P.
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The Tax‐smoothing Hypothesis: Evidence from Sweden, 1952–1999

The Scandinavian Journal of Economics, 2006
AbstractThis paper tests Barro's (1979) tax‐smoothing hypothesis using Swedish central government data for the period 1952–1999. According to the tax‐smoothing hypothesis, the government sets the budget surplus equal to expected changes in government expenditure.
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