Article ID Journal Published Year Pages File Type
965889 Journal of Macroeconomics 2013 23 Pages PDF
Abstract
► Optimal taxes in a context where firms decide to produce in a formal or an informal sector. ► The optimal capital income tax is negative. ► Corporate tax rate is positive and the sign of labor income tax is ambiguous. ► We show numerically that following a Ramsey policy has significant effects on welfare.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Optimal taxation with heterogeneous firms and informal sector
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