Non-linear Capital Taxation Without Commitment

We study efficient non-linear taxation of labour and capital in a dynamic Mirrleesian model incorporating political economy constraints. Policies are chosen sequentially over time, without commitment. Our main result is that the marginal tax on capital income is progressive, in the sense that richer agents face higher marginal tax rates. Copyright , Oxford University Press.

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Year of publication:	2012
Authors:	Farhi, Emmanuel ; Sleet, Christopher ; Werning, Iván ; Yeltekin, Sevin
Published in:	Review of Economic Studies. - Oxford University Press. - Vol. 79.2012, 4, p. 1469-1493
Publisher:	Oxford University Press

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010970101