Template-Type: ReDIF-Paper 1.0
Title: The Transition to a Cash Flow Income Tax
Author-Name: Christian Keuschnigg
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Abstract: The paper presents a one good two country computable general 
 equilibrium model with overlapping generations to evaluate intertemporal and 
 international effects from tax reform. Model treatment of household and firm 
 behavior is firmly rooted in the microeconomic theory of intertemporal 
 choice. The paper considers the effects from the implementation of a cash 
 flow income tax which was shown to be neutral with respect to intertemporal 
 decisions. The paper compares the effects in closed and open economies. In 
 solving for transition paths to new intertemporal equilibria, I also discuss 
 the generational welfare consequences of various arrangements that affect 
 the transition paths.
Series: Sonderforschungsbereich 303, University of Bonn, Germany

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Creation-Date: 1990-01
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Handle: RePEc:bon:bonsfa:276