Capital Taxation
Quantitative Explorations of the Inverse Euler Equation
Bibliographic Data
| ID | 10175397 |
|---|---|
| Authors | Emmanuel Farhi (0000-0002-8508-8106, Massachusetts Institute of Technology), Iván Werning (Massachusetts Institute of Technology) |
| Year | 2012 |
| Volume | 120 |
| Issue | 3 |
| Pages | 398-445 |
| Publication date | 2012-06-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/666747 |
| OpenAlex | W2098233687 |
| Language | EN |
| Citations received | 4 |
| References cited | 36 |
Economies with private information provide a rationale for capital taxation. In this paper we ask what the welfare gains from following this prescription are. We develop a method to answer this question in standard general equilibrium models with idiosyncratic uncertainty and incomplete markets. We find that general equilibrium forces are important and greatly reduce the welfare gains. Once these effects are taken into account, the gains are relatively small in our benchmark calibration. These results do not imply that dynamic aspects of social insurance design are unimportant, but they do suggest that capital taxation may play a modest role
Benchmark (surveying · Calibration · Capital (architecture · Econometrics · Economics · Euler equations · General equilibrium theory · Market economy · Mathematical economics · Microeconomics · Welfare · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Mathematics
Capitalism and Freedom
Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives
Economics of Information and Job Search
Redistributive taxation in a simple perfect foresight model
On the Covariance Structure of Earnings and Hours Changes
Uninsured Idiosyncratic Risk and Aggregate Saving
The design of tax structure
An Exploration in the Theory of Optimum Income Taxation
Long-Run Policy Analysis and Long-Run Growth
Optimal Unemployment Insurance
Growth Effects of Flat-Rate Taxes
Consumption versus Expenditure
Intertemporal Choice and Inequality
Designing Optimal Disability Insurance
Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing
An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money
Cyclical Dynamics in Idiosyncratic Labor Market Risk
Inequality and Social Discounting
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,29 |
| Citation span | 2012 - 2018 (7) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 4 |