The Welfare Cost of Capital Income Taxation in a Growing Economy
Bibliographic Data
| ID | 10179717 |
|---|---|
| Authors | Christophe Chamley (corresponding author) |
| Year | 1981 |
| Volume | 89 |
| Issue | 3 |
| Pages | 468-496 |
| Publication date | 1981-06-01 |
| 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 | 10.1086/260981 |
| OpenAlex | W2080447898 |
| Language | EN |
| Citations received | 12 |
The welfare cost of capital income taxation is analyzed in a general equilibrium framework, where the private sector is represented by a competitive household endowed with perfect foresight and an infinite life. The value of the welfare cost depends essentially on the elasticity of substitution between capital and labor in the production function. Numerical estimates are presented for different values of the parameters of the model. The welfare gain obtained by the abolition of the capital income tax is smaller when the private sector is not endowed with perfect foresight (it is reduced by about 40 percent when expectations are myopic). The allocation efficiency cost of the corporate tax dwarfs the intertemporal welfare cost
Capital (architecture · Economics · Elasticity of substitution · Futures studies · Labour economics · Market economy · Microeconomics · Monetary economics · Production (economics · Welfare · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Politics, Economics, and Education Policy
Alternative Forms of Government Expenditure Financing
Quebec prosperity
Growing Public
Macroeconomic Priorities
Convergence
The Rate of Time Preference and Dynamic Economic Analysis
Tax Smoothing in Frictional Labor Markets
Tax Reform and U.S. Economic Growth
Optimal Taxation in Models of Endogenous Growth
The Allocative and Efficiency Effects of Wealth Taxes
Tax evasion and the optimal inflation tax
The Welfare Cost of Factor Taxation in a Perfect-Foresight Model
| Unique citing works | 12 |
|---|---|
| Citations per year | 0.28 |
| Citation span | 1983 - 2012 (30) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 11 |