Capital Taxation in a Simple Finite-Horizon Old Model
AbstractIn a simple overlapping-generations model where the government has the power to levy commodity taxes and to implement inter-temporal transfers, we seek to characterise conditions under which capital taxation (or subsidization) does not form part of the optimal tax mix. It turns out that it can never be the case that captial taxes are identically zero along the Pareto frontier. Along the way, we derive and interpret the optimal tax formulae in the economy.
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Bibliographic InfoPaper provided by UBC Department of Economics in its series UBC Departmental Archives with number 00-11.
Length: 26 pages
Date of creation: 2000
Date of revision:
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OVERLAPPING GENERATIONS ; TAXES ; ECONOMIC REFORM;
Other versions of this item:
- Blackorby, Charles & Brett, Craig, 2004. "Capital Taxation In A Simple Finite-Horizon Olg Model," The Warwick Economics Research Paper Series (TWERPS) 709, University of Warwick, Department of Economics.
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- D60 - Microeconomics - - Welfare Economics - - - General
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
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