TSUCHIYA YOICHI
Department Undergraduate School , School of Commerce Position Professor |
|
Language | English |
Publication Date | 2016/01 |
Type | Academic Journal |
Peer Review | Peer reviewed |
Title | Dynamic Laffer curves, population growth and public debt overhangs |
Contribution Type | Sole-authored |
Journal | International Review of Economics & Finance |
Journal Type | Another Country |
Publisher | ELSEVIER SCIENCE BV |
Volume, Issue, Page | 41,pp.40-52 |
Author and coauthor | Yoichi Tsuchiya |
Details | This paper extends the Ireland (1994) model to incorporate population growth and examines a dynamic effect of a tax reduction on a long-run government budget We find evidence suggesting that the dynamic effect of a tax cut improves the government budget situation in the longrun. Our numerical analysis suggests that a population growth rate consistent with the U.S. economy has positive effects on a long-run government budget It is likely that low population growth leads to the deterioration of a long-run government budget. However, dynamic Laffer curves fail to arise incorporating a moderate initial debt level into the model. Furthermore, a public debt overhangs experiment casts doubt on the dynamic Laffer curves. (c) 2015 Elsevier Inc. All rights reserved. |
DOI | 10.1016/j.iref.2015.10.001 |
ISSN | 1059-0560 |
PermalinkURL | http://orcid.org/0000-0003-2485-3959 |