Nonlinear Capital Taxation Without Commitment
Name
Werning_Nonlinear Capital Taxation Without Commitment.pdf
Size
257.52 KB
Format
Adobe PDF
Checksum (MD5)
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Author(s)
Werning, Ivan
Farhi, Emmanuel
Sleet, Christopher
Yeltekin, Sevin
Alternative Title
Non-linear Capital Taxation Without Commitment
Date Issued
January 2012
Journal
The Review of Economic Studies
Publisher
Oxford University Press
Citation
Farhi, E., C. Sleet, I. Werning, and S. Yeltekin. “Non-linear Capital Taxation Without Commitment.” The Review of Economic Studies 79, no. 4 (October 18, 2012): 1469-1493.
Version
Author's final manuscript
Abstract
We study efficient non-linear taxation of labour and capital in a dynamic Mirrleesian model incorporating political economy constraints. Policies are chosen sequentially over time, without commitment. Our main result is that the marginal tax on capital income is progressive, in the sense that richer agents face higher marginal tax rates.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike 3.0
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1093/restud/rds001
