This is a combined and expanded version of the Walsh Lecture in honour of Henry George given at ACE 10, the 39th Australian Conference of Economists, Sydney, 29 September 2010, and a Guest Lecture given at the Treasury, Wellington, 5 October 2010. The author is grateful to Nick Barr, Hazel Bateman, Tim Hampton, Nicola Kirkup, Philip Meguire, Alison O’Connell, Mike Rafferty and Christie Smith for guidance on their countries’ pension systems and helpful comments on a previous draft.
Economic Theory and Tax and Pension Policies*
Article first published online: 9 JUN 2011
© 2011 The Economic Society of Australia
Special Issue: Selected Papers from the 39th Australian Conference of Economists, Sydney, 27-29 September 2010
Volume 87, Issue Supplement s1, pages 2–22, September 2011
How to Cite
DIAMOND, P. (2011), Economic Theory and Tax and Pension Policies. Economic Record, 87: 2–22. doi: 10.1111/j.1475-4932.2011.00733.x
- Issue published online: 19 AUG 2011
- Article first published online: 9 JUN 2011
Studying and advising about mandatory pension systems while also researching optimal tax theory, with particular attention to the taxation of capital income, brought attention to differences in both analyses and policies, while these two subjects intersect in the common practice of the tax-favouring of retirement savings. I have long been concerned about the implicit methodology used by the profession in going from theoretical analyses to policy advice. In this essay, I touch on all four of these topics – pensions, capital income taxes, tax-favoured retirement savings and methodology. I give particular attention to the pension systems in Australia and New Zealand.