TY  - BOOK
AU  - Kocherlakota,Narayana R.
TI  - The New Dynamic Public Finance
T2  - The Toulouse Lectures in Economics
SN  - 9780691139159
AV  - HJ192.5 .K63 2010eb
U1  - 336.001/5195 22
PY  - 2010///]
CY  - Princeton, NJ : 
PB  - Princeton University Press, 
KW  - Finance, Public
KW  - Mathematical models
KW  - Fiscal policy
KW  - Taxation
KW  - BUSINESS & ECONOMICS / Public Finance
KW  - bisacsh
N1  - Frontmatter --; Contents --; Preface --; 1. Introduction --; 2. The Ramsey Approach and Its Problems --; 3. Basics of Dynamic Social Contracting --; 4. Dynamic Optimal Taxation: Lessons for Macroeconomists --; 5. Optimal Intergenerational Taxation --; 6. Quantitative Analysis: Methods and Results --; 7. The Way Forward --; Index; restricted access; Issued also in print
N2  - Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research
UR  - https://doi.org/10.1515/9781400835270
UR  - https://www.degruyter.com/isbn/9781400835270
UR  - https://www.degruyter.com/cover/covers/9781400835270.jpg
ER  -