Capital Taxation and Ownership When Markets Are Incomplete

• 成果类型: Article
• 署名作者: Farhi, Emmanuel
• 署名单位: Harvard University; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/657996
• 发表日期: 2010
• 页码: 908-948
• 关键词: optimal fiscal-policy; monetary-policy; Maturity Structure; government debt; sticky prices; MODEL

摘要

This paper is a normative investigation of the properties of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets. The model features a representative-agent economy with linear taxes on labor and capital. I first allow the government to trade only a real risk-free bond. Optimal policy has the following features: labor taxes fluctuate very little, capital taxes are volatile and feature a positive (negative) spike after a negative (positive) shock to the government budget, and capital taxes average to roughly zero across periods. I then consider the implications of allowing the government to trade capital.