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Capital Taxation: Quantitative Explorations of the Inverse Euler Equation

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  • Ivan Werning

    (MIT)

  • Emmanuel Farhi

    (Harvard)

Abstract

efficiency gains can be sizable, but we find that most of the improvements can then attributed to the relaxation of borrowing constraints, rather than the introduction of savings distortions.

Suggested Citation

  • Ivan Werning & Emmanuel Farhi, 2009. "Capital Taxation: Quantitative Explorations of the Inverse Euler Equation," 2009 Meeting Papers 1262, Society for Economic Dynamics.
    • Handle: RePEc:red:sed009:1262
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    References listed on IDEAS

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