Chetty, Raj; Saez, Emmanuel - In: American Economic Journal: Economic Policy 2 (2010) 3, pp. 1-31
and corporate taxation. We develop a simple agency model in which managers and shareholders have conflicting interests to … explain the evidence. In this model, dividend taxation induces managers to undertake unproductive investments by retaining … and may only create second-order efficiency costs. Corporate income taxation may therefore be a more efficient way to …