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Capital Income Taxation and Household Production

Author

Listed:
  • Apps, Patricia

    (University of Sydney)

  • Rees, Ray

    (University of Munich)

Abstract

The Atkinson-Stiglitz Theorem and its extensions have been interpreted as implying that capital income should not be taxed. If, as seems reasonable on empirical grounds, we introduce production of household goods with close market substitutes, this conclusion no longer holds. We analyse optimal capital income taxation for this case.

Suggested Citation

  • Apps, Patricia & Rees, Ray, 2015. "Capital Income Taxation and Household Production," IZA Discussion Papers 9607, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9607
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    References listed on IDEAS

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    More about this item

    Keywords

    optimal capital taxation; household production;

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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