Fuster, Luisa; Imrohoroglu, Ayse; Imrohoroglu, Selahattin - In: Journal of Monetary Economics 55 (2008) 1, pp. 65-90
We compute the welfare effects of different revenue-neutral tax reforms that eliminate capital income taxation in two general equilibrium models calibrated to the U.S. economy. In our dynastic model, the reform with the largest welfare gain is the one that eliminates all income taxation and...