Consumption Externalities, Market Imperfections, and Optimal Taxation: A Clarification
2007/05/01
研討會日期 : 2007-05-01
時間 : 15:00
主講人 : Prof.Jun-Jen Chang
地點 : B棟110室
演講者簡介 : Prof. Jun-Jen Chang為中興大學經濟學博士(1998)。
現為本所副研究員。
其主要研究領域為總體經濟及勞動經濟。
演講摘要 : This paper sets up a dynamic model with a keeping-up-with-the Joneses preference and market imperfections. Two important questions are investigated: (i) under what circumstances and for what reason should the optimal tax be state-varying? (ii) what are the roles played by distinctive types of taxes (including labor, capital and consumption taxes) in the social optimum? By introducing merit good arguments, we propose an alternative approach for the Ljungqvist and Uhlig (2000) proposition that allows for a more precise interpretation of the demand-management tax policy. Surprisingly, we find that a keeping-up-with-the Joneses preference sufficiently leads the social planner to commit to a state-contingent tax on labor income and a stabilization tax policy is not always desirable for the economy. Besides, we incorporate a consumption tax into an extended model and show that the role of income tax will be replaced by that of a consumption tax. Under such circumstances, a consumption tax not only specializes in removing consumption externalities, but also varies with business cycle fluctuations.
