On the Optimal Taxation of Capital Income
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In this paper, the Chamley and Judd result on zero capital income taxation in the limit extends to labor taxes as long as accumulation technologies are constant returns to scale, and for a class of widely used preferences, consumption taxes are zero in this limit as well.About:
This article is published in Journal of Economic Theory.The article was published on 1997-03-01 and is currently open access. It has received 313 citations till now. The article focuses on the topics: Returns to scale & Human capital.read more
Citations
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Optimal Taxation in Models of Endogenous Growth
TL;DR: In this paper, the problem of optimal taxation in three infinite-horizon, representative-agent endogenous growth models is studied, and it is shown that the limiting tax rate on capital is no longer zero.
Posted Content
Taxing Capital? Not a Bad Idea after All!
TL;DR: In this article, the authors quantitatively characterize the optimal capital and labor income tax in an overlapping generations model with idiosyncratic, uninsurable income shocks, where households also differ permanently with respect to their ability to generate income.
Journal ArticleDOI
Taxing Capital? Not a Bad Idea after All!
TL;DR: In this paper, the authors quantitatively characterize the optimal capital and labor income tax in an overlapping generations model with idiosyncratic, uninsurable income shocks and permanent productivity difierences of households.
Journal ArticleDOI
Taxing Capital Income: A Bad Idea
TL;DR: In this paper, the authors unify the work of other researchers, who have confirmed Chamley's result independently using different types of models and approaches, using just one type of model (discrete time) and just one approach (primal).
Journal ArticleDOI
Optimal Taxation in Life-Cycle Economies
TL;DR: This work uses a very standard life-cycle growth model, in which individuals have a labor-leisure choice in each period of their lives, to prove that an optimizing government will almost always find it optimal to tax or subsidize interest income.
References
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On the mechanics of economic development
TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.
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Government Spending in a Simple Model of Endogenous Growth
TL;DR: In this article, tax-financed government services that affect production or utility are extended to include tax-supported government services, and the two rates rise initially with productive government expenditures but subsequently decline with an increase in utility-type expenditures.
Book ChapterDOI
An analysis of the principal-agent problem
TL;DR: In this article, the authors show that the optimal way of implementing an action by an agent can be found by solving a convex programming problem, and they use this to characterize the optimal incentive scheme and to analyze the determinants of the seriousness of an incentive problem.
Journal ArticleDOI
A Contribution to the Theory of Taxation
TL;DR: In this paper, the authors consider the problem of adjusting the marginal utility of money to different people in a purely competitive system with no foreign trade and assume that private and social net products are always equal or have been made so by State interference not included in the taxation.