Capital Taxation in a Simple Finite-Horizon Old Model

Charles Blackorby () and Craig Brett ()

UBC Departmental Archives from UBC Department of Economics

Abstract: In a simple overlapping-generations model where the government has the power to levy commodity taxes and to implement inter-temporal transfers, we seek to characterise conditions under which capital taxation (or subsidization) does not form part of the optimal tax mix. It turns out that it can never be the case that captial taxes are identically zero along the Pareto frontier. Along the way, we derive and interpret the optimal tax formulae in the economy.

Keywords: OVERLAPPING GENERATIONS; TAXES; ECONOMIC REFORM (search for similar items in EconPapers)
JEL-codes: D50 D60 D91 H20 (search for similar items in EconPapers)
Date: 2000

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Related works:
Working Paper: CAPITAL TAXATION IN A SIMPLE FINITE-HORIZON OLG MODEL (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:ubc:bricol:00-11

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