There are multiple reasons to motivate the role of capital taxation in heterogenous-agent incomplete-markets (HAIM) model. One is production inefficiency caused by precautionary savings. The other wealth redistribution played taxation.

In a second-best optimal growth setup with only factor taxes as available instruments, is it optimal to fully replace capital by labor income taxation? The answer is generally positive based on Chamley, Judd, Lucas, and many follow-up studies. In the present paper, we revisit this important tax reform-related issue by developing a human capitalbased endogenous growth framework with frictional l...

There is a strong case for arguing that, in contradiction to some traditional arguments in public economics, capital income should be taxed, though not necessarily under the same rate schedule as labour earnings. The Dual Income Taxation (DIT) system consists of two parallel piecewise linear tax schedules, in which that for capital income has a zero lower bracket rate and an upper bracket rate ...

the geographical scope of a dynasty and the selection of a capital as the center of its power can be considered as the essential factors in the establishment of a regime and its continuity; this matter seems to be neglected in the political structure of khwarazmshahi dynasty (598-628/1202-1231). the khwarazmshahi which were supposed to change into one of the greatest medieval dynasties led the ...

We study firms' optimal investment behavior in a dynamic duopoly framework. Embodied technological progress makes later generations more productive. The resulting model is a differential game combined with a vintage capital goods structure. Since such a framework has not been analyzed before, existing concepts have to be modified. Our numerical analysis first shows that a technological breakthr...