Optimal taxation and debt with uninsurable risks to human capital accumulation

Piero Gottardi, Atsushi Kajii and Tomoyuki Nakajima

No 14-007E, CIGS Working Paper Series from The Canon Institute for Global Studies

Abstract: We consider an economy where individuals face uninsurable risks to their human capital accumulation, and study the problem of determining the optimal level of linear taxes on capital and labor income together with the optimal path of the debt level. We show both analytically and numerically that in the presence of such risks it is bene cial to tax both labor and capital income and to have positive government debt.

Pages: 40
Date: 2014-06
New Economics Papers: this item is included in nep-dge, nep-hrm and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://cigs.canon/article/uploads/pdf/workingpapers/140717_nakajima.pdf (application/pdf)

Related works:
Journal Article: Optimal Taxation and Debt with Uninsurable Risks to Human Capital Accumulation (2015)
Working Paper: Optimal taxation and debt with uninsurable risks to human capital accumulation (2014)
Working Paper: Optimal taxation and debt with uninsurable risks to human capital accumulation (2014)
Working Paper: Optimal taxation and debt with uninsurable risks to human capital accumulation (2014)
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:cnn:wpaper:14-007e

Access Statistics for this paper

More papers in CIGS Working Paper Series from The Canon Institute for Global Studies Contact information at EDIRC.
Bibliographic data for series maintained by The Canon Institute for Global Studies ().