Optimal positive capital taxes at interior steady states by Jess Benhabib and Bálint Szöke
By: Benhabib, Jess
.
Contributor(s): Szöke, Bálint.
Material type: 
ArticlePublisher: 2021Subject(s): CAPITAL | RENDIMIENTOS DE CAPITAL | IMPUESTOS | REDISTRIBUCION | IMPOSICION OPTIMA | MODELOS ECONOMETRICOS
In:
American Economic Journal : Macroeconomics v. 13, n. 1, January 2021, p. 114-150Summary: We generalize recent results of Bassetto and Benhabib (2006 ) and Straub and Werning (2019 ) in a neoclassical model with endogenous labor-leisure choice where all agents are allowed to save and accumulate capital. We provide a sufficient condition under which optimal redistributive capital taxes remain at their allowed upper bound forever, even if the resulting equilibrium trajectory converges to a unique steady state with positive and finite consumption, capital, and labor. We then provide an interpretation of our sufficient condition. Using recent evidence on wealth distribution in the United States, we argue that our sufficient condition is empirically plausible.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2137/2021/1-2 (Browse shelf) | Available | OP 2137/2021/1-2 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 2137/2020/4 American Economic Journal : Macroeconomics | OP 2137/2021/1 American Economic Journal : Macroeconomics | OP 2137/2021/1-1 Consumption insurance against wage risk | OP 2137/2021/1-2 Optimal positive capital taxes at interior steady states | OP 2137/2021/2 American Economic Journal : Macroeconomics | OP 2137/2021/3 American Economic Journal : Macroeconomics | OP 2137/2021/3-1 Higher taxes at the top |
Resumen.
Bibliografía.
We generalize recent results of Bassetto and Benhabib (2006 ) and Straub and Werning (2019 ) in a neoclassical model with endogenous labor-leisure choice where all agents are allowed to save and accumulate capital. We provide a sufficient condition under which optimal redistributive capital taxes remain at their allowed upper bound forever, even if the resulting equilibrium trajectory converges to a unique steady state with positive and finite consumption, capital, and labor. We then provide an interpretation of our sufficient condition. Using recent evidence on wealth distribution in the United States, we argue that our sufficient condition is empirically plausible.
Click on an image to view it in the image viewer
There are no comments for this item.