On the Intergenerational Incidence of Wage and Consumption Taxes

28 Pages Posted: 19 Feb 2001

See all articles by Berthold U. Wigger

Berthold U. Wigger

University of Mannheim - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: December 2000

Abstract

This paper analyzes the intergenerational incidence of wage and consumption taxes imposed to finance a given amount of public expenditures. It employs a continuous time overlapping generations framework to demonstrate that it essentially hinges on the relationship between the age-earnings and age-consumption profiles of the households which generations bear the major burden of wage respectively consumption taxes. Furthermore, the paper points to some political economy implications of the incidence of wage and consumption taxes.

Keywords: Intergenerational incidence, wage and consumption taxes, life cycle model

JEL Classification: D91, E62, H22

Suggested Citation

Wigger, Berthold U., On the Intergenerational Incidence of Wage and Consumption Taxes (December 2000). Available at SSRN: https://ssrn.com/abstract=260031 or http://dx.doi.org/10.2139/ssrn.260031

Berthold U. Wigger (Contact Author)

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181 1797 (Phone)
+49 621 181 1794 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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