Precautionary Saving and the Timing of Taxes

摘要: This paper analyzes the effects of government debt and income taxes on consumption saving in a world infinitely lived households having uncertain heterogeneous incomes. The special structure model allows exact aggregation across despite incomplete markets. are shown to be substantial, roughly comparable those resulting from finite horizons, crucially dependent length time until is repaid. Also, anticipated changes cause consumption. Finally, an index fiscal stance derived.