| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 970265 | Journal of Public Economics | 2008 | 7 Pages |
Abstract
Optimal capital taxes may be positive in the steady state in Ramsey models with an incomplete set of factor taxes. I show this possibility crucially depends on how fiscal policy is constrained at date t = 0. If the government is barred from manipulating the value of initial assets, the Chamley–Judd result reappears: the optimal capital tax is always zero in the steady state.
Related Topics
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Economics and Econometrics
Authors
Roc Armenter,