Economics 2450A: Public Economics Section 9: Linear Capital Taxation
نویسنده
چکیده
In this section we introduce a framework to study optimal linear capital taxation. We first focus on a two-period model, define the concept of intertemporal wedge and derive optimal capital taxes using the Atkinson Stiglitz result. We then move to an infinite horizon model with aggregate uncertainty and derive optimal taxes. Finally, we study a model with capitalists and workers and show that only under some assumption about preferences we can recover a zero capital tax in steady state.1
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