Endogenous capital utilization, investor's effort, and optimal fiscal policy

• 成果类型: Article
• 署名作者: Zhu, XD
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(95)01232-X
• 发表日期: 1995
• 页码: 655-677
• 关键词: endogenous capital utilization; investor's effort; optimal fiscal policy; time consistency

摘要

The present paper studies the implications of endogenous capital utilization and investor's effort on the structure and time consistency of optimal fiscal policy. The main results are that levies of old capital are distortionary and should therefore not be used at confiscatory rates, that in a steady state capital and labor income should be taxed at the same rate and investment should be subsidized at the same rate as the tax rate, and that the optimal tax policy can be made time-consistent through debt restructuring.