The seminar will be held in the Visitor Centre at 3:15 pm.
Juan Carlos Conesa with Carlos Garriga (Universitat Autonoma de Barcelona)
Abstract
In this paper we show that the generational accounting framework used to measure tax incidence can give inaccurate measurement of tax burden imbalances across cohorts. We find that it is possible to construct tax policy reforms consistent with the same pattern of consumption, work effort, and utility across generations, but with different tax burden measurements when using the standard generational accounting procedure. This result is very important for policy evaluation, since it shows that the selection of tax policies based on generational accounts could potentially be misleading. In addition, we provide an alternative procedure robust to the choice of tax instruments.