The spirit of capitalism and optimal capital taxation

Fanghui Li, Gaowang Wang and Heng-Fu Zou ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper reexamines the famous Chamley-Judd zero capital tax theorem in model economies where the agents are endowed with the spirit of capitalism. It is shown that the limiting capital income tax is not zero in general and depends on the utility specifications rather than the production technology. The similar formulas of optimal capital taxes are derived in more general settings with multiple physical capitals or heterogeneous agents (capitalists and workers).

Keywords: the Spirit of Capitalism; Capital Income Taxation; Heterogeneous Agents (search for similar items in EconPapers)
JEL-codes: E62 H21 (search for similar items in EconPapers)
Date: 2020-05-20
New Economics Papers: this item is included in nep-dge, nep-mac, nep-ore and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The spirit of capitalism and optimal capital taxation (2020)
Working Paper: The spirit of capitalism and optimal capital taxation (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:100539

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