The spirit of capitalism and optimal capital taxation

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

Economics Letters, 2020, vol. 192, issue C

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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176520301695
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The spirit of capitalism and optimal capital taxation (2020)
Working Paper: The spirit of capitalism and optimal capital taxation (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301695

DOI: 10.1016/j.econlet.2020.109243

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().