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Seigniorage as a Tax: A Quantitative Evaluation

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  • Imrohoruglu, Ayse
  • Prescott, Edward C

Abstract

In this paper we analyze the efficacy of seignorage as a tax associated with various monetary arrangements in a computable general equilibrium model. For the economies examined, we find that seignorage tax is not a good one relative to a tax on labor income. If the after-tax real return is ?5 percent, as it was in the 1974?1978 period, welfare is approximately 0.5 percent of consumption lower than it would be if the after-tax return were zero.
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(This abstract was borrowed from another version of this item.)

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  • Imrohoruglu, Ayse & Prescott, Edward C, 1991. "Seigniorage as a Tax: A Quantitative Evaluation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(3), pages 462-475, August.
    • Handle: RePEc:mcb:jmoncb:v:23:y:1991:i:3:p:462-75
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