Optimal taxation in a growth model with public consumption and home production

• 成果类型: Article
• 署名作者: Zhang, Jie; Davies, James; Zeng, Jinli; McDonald, Stuart
• 署名单位: University of Queensland; Western University (University of Western Ontario); National University of Singapore; California Institute of Technology
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2007.09.008
• 发表日期: 2008
• 页码: 885-896
• 关键词: home production; public consumption; optimal taxation; INVESTMENT

摘要

In a neoclassical growth model with public consumption, we show the following Pareto optimal tax rules. The government should tax leisure and private consumption at the same rate, and subsidize net investment at the same rate it taxes net capital income. Also, it should tax capital income more heavily than labor income. In an extension for home production, the additional rule is to tax investment for home production at the same rate of the tax on private market consumption. These tax and subsidy rates should be constant over time except the initial tax rate on capital income. (C) 2007 Elsevier B.V. All rights reserved.