Yet another long-run neutrality result: Absence of tax-induced growth effects under implicit intergenerational contracts [An article from: Economics Letters]

This digital document is a journal article from Economics Letters, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
We provide an example whereby the existence of optimal time-consistent implicit contracts between the young parent and the yet-to-be-born child could nullify the long-run effects of income taxes on human-capital investment and growth. Implications for the Ricardian equivalence theorem are also discussed.