Efficient timing of income taxes

Geoffrey H. Kingston*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)


The marginal collection cost of an income tax is predicted to be a martingale, and the marginal income tax rate is predicted to be a supermartingale. Collection costs can be estimated from tax rates. Almost all tests based on a U.S. series of actual marginal income tax rates, 1913-1975, accept the hypothesis of random-walk behavior in collection costs, and reject the parallel hypothesis on tax rates.

Original languageEnglish
Pages (from-to)271-280
Number of pages10
JournalJournal of Public Economics
Issue number2
Publication statusPublished - 1984
Externally publishedYes


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