The Welfare Cost of Factor Taxation in a Perfect-Foresight Model

摘要: This paper examines the marginal efficiency cost of various factor taxes in a dynamic general-equilibrium model. The au thor solves for excess burden anticipated and unanticipated, t emporary permanent, tax policies. Using range estimates taste technology parameters, he finds burdens larger than those indicated by previous studies that use static models. These exc ess are sensitive to parameter values timing. However, th e rankings alternative policies turn out be insensitive structural values. Copyright 1987 University Chicago Press.