Li, Fanghui and Wang, Gaowang (2019): The Demand for Status and Optimal Capital Taxation.
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Abstract
The paper examines the famous Chamley-Judd zero capital tax theorem in model economies where agents care about their social status. We show that the limiting capital income tax is not zero in general and its sign depends only on the utility specifications. Our conclusion is robust to several important extensions: the model with multiple physical capitals, the model with both human and physical capitals, and the one with heterogeneous agents.
Item Type: | MPRA Paper |
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Original Title: | The Demand for Status and Optimal Capital Taxation |
Language: | English |
Keywords: | Demand for Status; Capital Income Tax; Human Capital; Heterogeneous Agents |
Subjects: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency ; Optimal Taxation H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies |
Item ID: | 96127 |
Depositing User: | Gaowang Wang |
Date Deposited: | 23 Sep 2019 09:47 |
Last Modified: | 26 Sep 2019 10:07 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/96127 |
Available Versions of this Item
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The Demand for Status and Optimal Capital Taxation. (deposited 18 Sep 2019 16:20)
- The Demand for Status and Optimal Capital Taxation. (deposited 23 Sep 2019 09:47) [Currently Displayed]