Normative Aspects of Differential, State-Contingent Capital Income Taxation

Vidar Christiansen

Oxford Economic Papers, 1995, vol. 47, issue 2, 286-301

Abstract: The paper studies optimal taxation in a two-period, two-asset model in which the assets have random returns. The taxes are state-contingent, proportional taxes on the asset-returns. Government revenue requirements in each state of nature are given. Consumers are identical. Two results are found. It is shown that the optimum has a degree of freedom, so that there is a set of equivalent optimal tax systems. Conditions are also established for the optimum to have no portfolio distortion in the sense that there is no tax inducement to switch from one asset to the other. Copyright 1995 by Royal Economic Society.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819950 ... 0.CO%3B2-C&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:oup:oxecpp:v:47:y:1995:i:2:p:286-301

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().