Redistributive capital taxation revisited
By: Kina, O., Slavík, C. and Yazici, H
.
Material type: 
BookPublisher: American Economic Journal: Microeconomics Description: 16(2), Apr, 2024: p.182-216.
In:
American Economic Journal: MicroeconomicsSummary: This paper uses a rich quantitative model with endogenous skill acquisition to show that capital-skill complementarity provides a quantitatively significant rationale to tax capital for redistributive governments. The optimal capital income tax rate is 67 percent, while it is 61 percent in an identically calibrated model without capital-skill complementarity. The skill premium falls from 1.9 to 1.84 along the transition following the optimal reform in the capital-skill complementarity model, implying substantial indirect redistribution from skilled to unskilled workers. These results show that a redistributive government should take into account capital-skill complementarity when taxing capital.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mac.20200395
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
|
Indian Institute of Public Administration | 16(2), Apr, 2024: p.182-216 | Available | AR131740 |
This paper uses a rich quantitative model with endogenous skill acquisition to show that capital-skill complementarity provides a quantitatively significant rationale to tax capital for redistributive governments. The optimal capital income tax rate is 67 percent, while it is 61 percent in an identically calibrated model without capital-skill complementarity. The skill premium falls from 1.9 to 1.84 along the transition following the optimal reform in the capital-skill complementarity model, implying substantial indirect redistribution from skilled to unskilled workers. These results show that a redistributive government should take into account capital-skill complementarity when taxing capital.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mac.20200395
There are no comments for this item.