Thumbnail Image
Item

The Dual Role of Money and Optimal Financial Taxes

Huizinga,H.P.
Abstract
This paper reconsiders the optimal taxation of money and other financial assets.The optimal tax formulae reflect that money provides liquidity services and is a saving vehicle.In fact, it is useful to reformulate the optimal tax problem to allow for separate taxes on the liquidity and saving functions of money.This reformulation allows one to better understand the original optimal tax problem.The possible optimality of a subsidy on borrowing, for instance, can be explained if it is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as saving vehicles.
Description
Pagination: 15
Date
1996
Journal Title
Journal ISSN
Volume Title
Publisher
Macroeconomics
Collections
Tilburg University Research Output Collection
Show all metadata
Files
Thumbnail Image
99.pdf
Adobe PDF, 82.78 KB
Research Projects
Organizational Units
Journal Issue
Keywords
money, savings, taxation, E40 - General, H21 - Efficiency ; Optimal Taxation
Citation
Huizinga, H P 1996 'The Dual Role of Money and Optimal Financial Taxes' CentER Discussion Paper, vol. 1996-99, Macroeconomics, Tilburg.
URI
https://hdl.handle.net/20.500.14602/26371
Embedded videos