Series: IMF Working Papers
Author(s): Evan Tanner , and Kevin Carey
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2005
Keywords: Tax smoothing, sustainability, and forecast error, tax rates, statistics, standard deviation, statistic, forecast error,
If permanent output is uncertain, tax smoothing can be perilous: both debt levels and tax rates are difficult to stabilize and may drift upwards. One practical remedy would be to target the debt. However, our simul...