Munich Personal RePEc Archive

Capital Tax as a Consequence of Bargaining

Saito, Yuta (2015): Capital Tax as a Consequence of Bargaining.

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We study an OLG model in which heterogenous agents bargain over capital taxation. In our model, both of the balance of bargaining power and threat point, that standard median voter models have not considered, are endogenized. We show that the two key features are crucial determinants for political as well as economic outcomes.

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