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Intertemporal Revenue-Smoothing in the Postwar United States and Canada

Author

Listed:
  • Akhand, H-A
  • Marshall, J-B

Abstract

The hypothesis that cooperation between fiscal and monetary authorities to minimize the distortionary costs of financing an exogenous stream of government expenditures implies a long-run relationship between inflation and tax rates is called the revenue-smoothing hypothesis. This paper uses the marginal tax rate as a tax measure, and tests a hierarchy of hypoteses implied by the revenue-smoothing model.

Suggested Citation

  • Akhand, H-A & Marshall, J-B, 1996. "Intertemporal Revenue-Smoothing in the Postwar United States and Canada," Papers 71, Regina - Department of Economics.
    • Handle: RePEc:fth:regina:71
    as

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    More about this item

    Keywords

    PUBLIC EXPENDITURES; TAXATION; FISCAL POLICY;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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