Efficient Tax Reform in a Dynamic Model of General Equilibrium
Quarterly Journal of Economics
1985
The welfare gain of a shift from capital to a labor income tax is determined in a model of intertemporal optimization with infinite horizon and variable labor supply. The welfare impact of small tax changes is computed by an approximation method around the steady state. When the difference between the growth rate and the discount rate is small, the welfare impact of tax reform depends mainly on the parameters of the production function.
- DOI
- 10.2307/1885385
- Volume
- 100 (2)
- Pages
- 335
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- BibTeX
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