英文摘要 |
This paper investigates the effect of an increase in consumption taxes both in the steady state and along the transitional dynamics. We find that a higher consumption tax always reduces the household's welfare if we only investigate the steady state. If the government implements the policy without declaring it in advance, then a higher consumption tax also has a welfare cost. In addition, if we consider an announcement effect for a change in the consumption tax, then the welfare cost drops when the intertemporal elasticity of substitution for consumption is lower, but rises under a longer period of time between the policy's announcement and its implementation. The above results still hold under no leisure-labor trade-off, under an endogenous growth model, or under different utility functions. |