IDEAS home Printed from https://ideas.repec.org/a/mcb/jmoncb/v27y1995i2p389-403.html
   My bibliography  Save this article

Income Tax Indexation in an Open Economy

Author

Listed:
  • Lassila, Jukka

Abstract

Indexation of progressive income taxes provides a way of cushioning against various shocks. It is both an alternative and a complement to wage indexation, but as a policy instrument it is much more ambiguous. James M. Holmes and David J. Smyth (1972) have shown that if money demand depends on disposable income, tax cuts may be contractionary. The author shows that this may change the results of Neil Bruce (1981) concerning tax indexation completely. Progressive taxation also complicates Joshua Aizenman's (1985) findings concerning wage indexation. An increase in openness, for instance, does not necessarily increase the optimal degree of wage indexation. Copyright 1995 by Ohio State University Press.

Suggested Citation

  • Lassila, Jukka, 1995. "Income Tax Indexation in an Open Economy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 389-403, May.
    • Handle: RePEc:mcb:jmoncb:v:27:y:1995:i:2:p:389-403
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-2879%28199505%2927%3A2%3C389%3AITIIAO%3E2.0.CO%3B2-7&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kotilainen, Markku, . "Exchange Rate Unions: A Comparison with Currency Basket and Floating Rate Regimes," ETLA A, The Research Institute of the Finnish Economy, number 21, June.
    2. Kotilainen, Markku, "undated". "Economic Shocks, Progressiveness of Taxation, and Indexation of Taxes and Public Expenditure in EMU," Discussion Papers 1011, The Research Institute of the Finnish Economy.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mcb:jmoncb:v:27:y:1995:i:2:p:389-403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.