Dai, Darong; Shen, Kunrong; Ma, Ruihua - In: Frontiers of Economics in China 8 (2013) 1, pp. 64-90
This paper develops a dynamic general equilibrium model to investigate the optimal level of capital income taxation in … restrict our investigation to the issue of optimal physical capital income tax; and the labor supply is also endogenously … determined. This paper proves that the optimal capital income tax should be zero provided exogenous government expenditure on …