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Tax Smoothing and Expenditure Creep - WP 98/09

Publication Details

  • Tax Smoothing and Expenditure Creep
  • Published: Dec 1998
  • Status: Current
  • Author: Pinfield, Chris
    • Hard copy: Available in PDF format only.
     

    Tax Smoothing and Expenditure Creep

    New Zealand Treasury Working Paper 98/09

    Published Dec 1998

    Author: Chris Pinfield 

    Abstract

    Tax smoothing minimises the economic costs of raising taxes to finance a varying profile of expenditure. This standard result assumes that expenditure pressures do not vary with the short term fiscal position. In the presence of expenditure creep, however, tax smoothing is no longer optimal tax policy.

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