Optimal Redistributive Capital Taxation in a Neoclassical Growth Model
نویسنده
چکیده
1. Judd (1985) and Chamley (1986) obtained results that in the long run, the optimal capital income taxation should be zero. And they claim that the result does not depend on whether government has the ability to borrow or not. 2. Lansing in this paper gave a counterexample under which the optimal capital income tax rate is non-zero in the long run when the government does not have the ability to borrow. The paper shows that government’s ability to borrow matters. 3. The counterexample is similar to Xie (1997) in that “noncontrollability” is involved. The difference is that in Xie, there is a representative agent; in Lansing, there are two classes of individuals: the capitalists and the workers. Capitalists do not work and workers do not save. 4. Capitalists:
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