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We demonstrate by mathematical analysis and systematic computer simulations that redistribution can lead to sustainable … consider that a government collects a proportion of income and reduces it by a fraction as costs for administration (efficiency … losses). The remaining public good is equally redistributed to all agents. Sustainable growth is induced by redistribution …
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We study the optimality of taxing capital income according to a Rate-of-Return Allowance proposed by the Mirrlees Review. In a mean-variance framework the optimal tax on risk-free returns is zero with constant returns to scale in private investment, but positive with decreasing returns to scale,...
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The paper deals with taxation effects on optimal portfolio rules of de fined contribution (DC) and de fined benefi t (DB) pension funds in a continuous-time setting. Following practice, three tax types are considered: on contributions, investment gains and pensions. We focus on the tax effects...
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