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dc.contributor.authorGasteiger, Emanuel
dc.contributor.authorZhang, Shoujian
dc.date.accessioned2013-09-27T11:01:02Z
dc.date.available2013-09-27T11:01:02Z
dc.date.issued2013-08-26
dc.identifier.citationGasteiger , E & Zhang , S 2013 ' Anticipation, learning and welfare : the case of distortionary taxation ' School of Economics & Finance Discussion Paper 1309 , no. 1309 , University of St Andrews .en
dc.identifier.issn0962-4031
dc.identifier.otherPURE: 53047847
dc.identifier.otherPURE UUID: 6819dba2-f12b-4527-925d-f07c8e188dde
dc.identifier.urihttps://hdl.handle.net/10023/4067
dc.descriptionRevise and resubmit in Journal of Economic Dynamics and Controlen
dc.description.abstractWe study the impact of anticipated fiscal policy changes in a Ramsey economy where agents form long-horizon expectations using adaptive learning. We ex- tend the existing framework by introducing distortionary taxes as well as elastic labour supply, which makes agents' decisions non-predetermined but more realistic. We detect that the dynamic responses to anticipated tax changes under learning have oscillatory behaviour that can be interpreted as self-ful lling waves of optimism and pessimism emerging from systematic forecast errors. Moreover, we demonstrate that these waves can have important implications for the welfare consequences of fiscal reforms.
dc.format.extent32
dc.language.isoeng
dc.publisherUniversity of St Andrews
dc.relation.ispartofseriesSchool of Economics & Finance Discussion Paper 1309en
dc.rights(c) The authorsen
dc.subjectFiscal policyen
dc.subjectAdaptive learningen
dc.subjectOscillationsen
dc.subjectHB Economic Theoryen
dc.subject.lccHBen
dc.titleAnticipation, learning and welfare : the case of distortionary taxationen
dc.typeWorking or discussion paperen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews. School of Economics and Financeen
dc.identifier.urlhttp://ideas.repec.org/p/san/wpecon/1309.htmlen


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