Prudent Budgetary Policy: Political Economy of Precautionary Taxation.
The theory of tax smoothing and determination of public debt with uncertain future national income is extended for prudence. A prudent government deliberately underestimates future national income and the tax base, especially if the variance and persistence of shocks hitting the tax base are large a...
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| Format: | Working paper |
| Language: | English |
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CESifo Group Munich
2007
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