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Weakly Nonseparable Preferences and Distortionary Taxes in A Small Open Economy
Oleh:
Shouyong, Shi
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
INTERNATIONAL ECONOMIC REVIEW vol. 35 no. 2 (1994)
,
page 411-428.
Topik:
taxes
;
non separable preferences
;
distortionary taxes
;
small open economy
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
II49
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
This paper examines the dynamic effects of distortionary taxes in a small open economy. The employed utility function implies both endogenous rates of time preference and a tractable form of weak nonseparability between consumption and leisure. Weak non separability induces novel long - run welfare and wealth effects of taxes and generates very different current account movements. Endogenous rates of time preference facilitate the examination of a tax on international borrowing and lending.
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