{"title":"Do anticipated tax changes matter? Further evidence from the United Kingdom","authors":"Fabio C. Bagliano","doi":"10.1016/0035-5054(94)90001-9","DOIUrl":null,"url":null,"abstract":"<div><p>This paper provides some evidence against the rational expectations—permanent income model of consumption behaviour and the Ricardian Equivalence proposition by testing the responsiveness of spending to the implementation of pre-announced changes in income taxes. A long series of recurrent episodes of this kind for the United Kingdom (1960–1990) is examined. It is found that consumption expenditure strongly reacts to (pre-announced) fiscally-induced changes in current disposable income. This effect is attributable to the semi-durable and durable component of spending.</p></div>","PeriodicalId":101136,"journal":{"name":"Ricerche Economiche","volume":"48 2","pages":"Pages 87-108"},"PeriodicalIF":0.0000,"publicationDate":"1994-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/0035-5054(94)90001-9","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Ricerche Economiche","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/0035505494900019","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 4
Abstract
This paper provides some evidence against the rational expectations—permanent income model of consumption behaviour and the Ricardian Equivalence proposition by testing the responsiveness of spending to the implementation of pre-announced changes in income taxes. A long series of recurrent episodes of this kind for the United Kingdom (1960–1990) is examined. It is found that consumption expenditure strongly reacts to (pre-announced) fiscally-induced changes in current disposable income. This effect is attributable to the semi-durable and durable component of spending.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
