Intertemporal equilibrium with physical capital and financial asset: role of dividend taxation

Pham, Ngoc-Sang (2023): Intertemporal equilibrium with physical capital and financial asset: role of dividend taxation.

Abstract

The paper introduces dividend taxation and productive government spending in an infinite-horizon general equilibrium model with heterogeneous agents and financial market imperfections. We point out that imposing a dividend tax and using the revenue from this tax to finance productive government spending may prevent economic recession and promote economic growth. We also investigate the issue of optimal dividend taxation and the role of dividend taxation on the asset price bubble.

• Item Type: MPRA Paper
• Language: English
• Keywords: Intertemporal equilibrium, recession, economic growth, productive government spending, dividend taxation, asset price bubbles
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium; D - Microeconomics > D9 - Intertemporal Choice; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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