Rent taxation and its intertemporal welfare effects in a small open economy

Marko Koethenbuerger and Panu Poutvaara

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Published in International Tax and Public Finance 5 16(2009): pp. 697-709

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Rent taxation and its intertemporal welfare effects in a small open economy (2009)
Working Paper: Rent Taxation and its Intertemporal Welfare Effects in a Small Open Economy (2007)
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:lmu:muenar:19461

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().