Chari, VV;
Christiano, LJ;
Kehoe, PJ;
(1993)
Optimality of the Friedman rule in economies with distorting taxes.
(NBER Working Paper
4443).
National Bureau of Economic Research: Cambridge, Massachusetts, USA.
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Abstract
We find conditions for the Friedman rule to be optimal in three standard models of money. These conditions are homotheticity and separability assumptions on preferences similar to those in the public finance literature on optimal uniform commodity taxation. We show that there is no connection between our results and the result in the standard public finance literature that intermediate goods should not be taxed.
| Type: | Working / discussion paper |
|---|---|
| Title: | Optimality of the Friedman rule in economies with distorting taxes |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.3386/w4443 |
| Publisher version: | http://www.nber.org/papers/w4443 |
| Language: | English |
| Additional information: | This is the published version of record. For information on re-use, please refer to the publisher’s terms and conditions. - Text has been published in the Journal of Monetary Economics, vol. 37, no. 2 (April 1996). |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10058597 |
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