Please use this identifier to cite or link to this item:
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Tax smoothing in a business cycle model with capital-skill complementarity
Authors: Angelopoulos, Konstantinos
Asimakopoulos, Stylianos
Malley, James R
Contact Email:
Keywords: Skill premium
Tax smoothing
Optimal fiscal policy
Issue Date: Feb-2015
Publisher: Elsevier
Citation: Angelopoulos K, Asimakopoulos S & Malley JR (2015) Tax smoothing in a business cycle model with capital-skill complementarity, Journal of Economic Dynamics and Control, 51, pp. 420-444.
Abstract: This paper undertakes a normative investigation of the quantitative properties of optimal tax smoothing in a business cycle model with state contingent debt, capital-skill complementarity and endogenous skill acquisition under technology and public expenditure shocks. We find that skilled and unskilled labour tax smoothing maintain quantitatively under externalities and exogenous shocks in skill acquisition, as well as when the relative skill supply is exogenously determined. We further find that the government finds it optimal to reduce both the size of the wedge between the marginal rates of substitution and transformation in skill attainment in the long-run and the standard deviation of this wedge over the business cycle. This is achieved by subsidising skill creation and taxing both types of labour income.
Type: Journal Article
DOI Link:
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: University of Glasgow
University of Glasgow

Files in This Item:
File Description SizeFormat 
Tax_smoothing_JEDC_2015.pdf560.26 kBAdobe PDFUnder Embargo until 31/12/2999     Request a copy

Note: If any of the files in this item are currently embargoed, you can request a copy directly from the author by clicking the padlock icon above. However, this facility is dependant on the depositor still being contactable at their original email address.

This item is protected by original copyright

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.