01750cas a2200253 a 4500 AALejournalIMF007555 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859249 1018-5941 BD-DhAAL BD-DhAAL Heijdra, Ben. The Dynamic Macroeconomic Effects of Tax Policy in an Overlapping Generations Model / Ben Heijdra, Jenny Ligthart. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper studies the dynamic allocation effects of tax policy in the context of an overlapping generations model of the Blanchard-Yaari type. The model is extended to allow for endogenous labor supply and three tax instruments: a capital income tax, labor income tax, and consumption tax. Analytical expressions and simple diagrams are used to discuss the impact, transition, and long-run effects of tax policy changes. It is shown that a part of the long-run incidence of capital and consumption taxes falls on capital when households' horizons are finite, whereas labor would fully bear the burden of these taxes in an infinite horizon model. Mode of access: Internet Ligthart, Jenny. IMF Working Papers; Working Paper ; No. 1998/182 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/182/001.1998.issue-182-en.xml IMF e-Library