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Fiscal foresight-the phenomenon that legislative and implementation lags ensure that private agents receive clear signals about the tax rates they face in the future-is intrinsic to the tax policy process. This paper develops an analytical framework to study the econometric implications of fiscal foresight. Simple theoretical examples show that foresight produces equilibrium time series with nonfundamental representations, which misalign the agents' and the econometrician's information sets.doi:10.3982/ecta8337 fatcat:dtfogjtrwbfb5ictxksx5d5oma