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Optimal taxation of capital income in a growth model with monopoly profits

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  • Jang-Ting Guo
  • Kevin J. Lansing

Abstract

An extension of the standard neoclassical growth model, demonstrating that the optimal steady-state tax on capital income can be positive, negative, or zero, depending on the level of monopoly profits and the degree to which profits can be taxed.

Suggested Citation

  • Jang-Ting Guo & Kevin J. Lansing, 1995. "Optimal taxation of capital income in a growth model with monopoly profits," Working Papers (Old Series) 9510, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9510
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    References listed on IDEAS

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    Cited by:

    1. Mayer-Foulkes David A, 2010. "Long-Term Fundamentals of the 2008 Economic Crisis," Global Economy Journal, De Gruyter, vol. 9(4), pages 1-25, January.
    2. Kevin J. Lansing, 1994. "Optimal fiscal policy when public capital is productive: a business- cycle perspective," Working Papers (Old Series) 9406, Federal Reserve Bank of Cleveland.

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    Keywords

    Taxation; Dividends;

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