The Specification of the Demand for Money and the Tax Multiplier.
This paper modifies the standard IS-LM curve model by making the demand for money a function of taxes as well as of national income and the rate of interest. If finds that as a result, the tax multiplier may be positive and a progressive income tax may be less of a built-in stabilizer than a proport...
| Publicado en: | Journal of Political Economy Vol. 80; no. 1; pp. 179 - 186 |
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| Autores principales: | , |
| Formato: | Artículo |
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University of Chicago Press
Jan/Feb72
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=5051939&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 5051939 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: Jan/Feb72 vid: 80 iid: 1 pid: 415 pub: University of Chicago Press artinfo: ui: 5051939 10.1086/259871 ppf: 179 ppct: 7 formats: tig: atl: The Specification of the Demand for Money and the Tax Multiplier. aug: au: Holmes, James M. Smyth, David J. affil: State University of New York, Buffalo. Claremont Graduate School. su: Demand for money Multiplier (Economics) Taxation Income Interest rates Households Decision making sug: subj: Demand for money Multiplier (Economics) Taxation Income Interest rates Households Decision making ab: This paper modifies the standard IS-LM curve model by making the demand for money a function of taxes as well as of national income and the rate of interest. If finds that as a result, the tax multiplier may be positive and a progressive income tax may be less of a built-in stabilizer than a proportional income tax. These curious analytical results have as yet unknown empirical content, but cannot be rejected a priori. The standard procedure in an IS-LM curve model is to make the demand for money a function of national income and the rate of interest. National income is taken as a measure for the transactions of either households or firms. Given the importance of income tax deductions at source, the flow of receipts relevant to households' money-holding decisions is surely income after tax, (personal disposable income) rather than national income. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1972 holdings: @attributes: islocal: N |
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