Non-linear capital taxation without commitment

Review of Economic Studies

Volumn 79, Issue 4, 2012, Pages 1469-1493

  Farhi, Emmanuel ^a   Sleet, Christopher ^b   Werning, Iván ^c   Yeltekin, Sevin ^b  

^a HARVARD UNIVERSITY   (United States)

^b CARNEGIE MELLON UNIVERSITY   (United States)

^c MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Capital taxation; Mirrlees; Political economy; Progressivity

Indexed keywords

CAPITAL; ECONOMIC THEORY; LABOR; NONLINEARITY; NUMERICAL MODEL; POLITICAL ECONOMY; TAX SYSTEM;

EID: 84867826064     PISSN: 00346527     EISSN: 1467937X     Source Type: Journal    
DOI: 10.1093/restud/rds001     Document Type: Article

References (33)

1. ACEMOǦLU, D., GOLOSOV, M. and TSYVINSKI, A. (2007), "Dynamic Mirrlees Taxation under Political Economy Constraints" (Mimeo).
2. ACEMOǦLU, D., GOLOSOV, M. and TSYVINSKI, A. (2008), "Political Economy of Mechanisms", Econometrica, 76, 619-641.
3. ALESINA, A. and RODRICK, D. (1994), "Distributive Politics and Economic Growth", Quarterly Journal of Economics, 109, 465-490.
4. ATKESON, A. and LUCAS, R. E., Jr. (1992), "On Efficient Distribution with Private Information", Review of Economic Studies, 59, 427-453.
5. ATKINSON, A. B. and STIGLITZ, J. E. (1976), "The Design of Tax Structure: Direct vs. Indirect Taxation", Journal of Public Economics, 6, 55-75.
6. BENABOU, R. (2002), "Tax and Education Policy in a Heterogeneous-Agent Economy: What Levels of Redistribution Maximize Growth and Efficiency?", Econometrica, 70, 481-517.
7. BENHABIB, J. and RUSTICHINI, A. (1996), "Social Conflict and Growth", Journal of Economic Growth, 1, 125-139.
8. BERTOLA, G. (1993), "Factor Shares and Savings in Endogenous Growth", American Economic Review, 83, 1184- 1199.
9. BISIN, A. and RAMPINI, A. A. (2006), "Markets as Beneficial Constraints on the Government", Journal of Public Economics, 90, 601-629.
10. CHAMLEY, C. (1986), "Optimal Taxation of Capital in General Equilibrium", Econometrica, 54, 607-622.
11. CHARI, V. V. and KEHOE, P. J. (1990), "Sustainable Plans", Journal of Political Economy, 98, 616-636.
12. COUGHLIN, P. J. (1986), "Elections and Income Redistribution", Public Choice, 50, 27-91.
13. EROSA, A., FUSTER, L. and GUEORGI, K. (2010), "The Heterogeneity and Dynamics of Individual Labor Supply over the Life Cycle: Facts and Theory" (Mimeo).
14. FARHI, E. and WERNING, I. (2007), "Inequality and Social Discounting", Journal of Political Economy, 115, 365-402.
15. FARHI, E. and WERNING, I. (2008), "Progressive Estate Taxation" (Mimeo)
16. FISCHER, S. (1980), "Dynamic Inconsistency, Cooperation, and the Benevolent Dissembling Government", Journal of Economic Dynamics and Control, 2,93-107.
17. HEATHCOTE, J., PERRI, F. and VIOLANTE, G. L. (2010), "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006", Review of Economic Dynamics, 13, 15-51.
18. JUDD, K. L. (1985), "Redistributive Taxation in a Perfect Foresight Model", Journal of Public Economics, 28, 59-83.
19. KIMBALL, M. S. and SHAPIRO, M. D. (2008), "Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?" (NBER Working Papers, National Bureau of Economic Research, Inc).
20. KLEIN, P., KRUSELL, P. and RIOS-RULL, J. V. (2008), "Time-Consistent Public Policy", Review of Economic Studies, 75, 789-808.
21. KLEIN, P. and RIOS-RULL, J. V. (2003), "Time-Consistent Optimal Fiscal Policy", International Economic Review, 44, 1217-1245.
22. KOTLIKOFF, L., PERSSON, T. and SVENSSON, L. (1988), "Social Contracts as Assets: A Possible Solution to the Time-Inconsistency Problem", American Economic Review, 78, 662-677.
23. KYDLAND, F. and PRESCOTT, E. C. (1977), "Rules Rather than Discretion: The Inconsistency of Optimal Plans", Journal of Political Economy, 85, 473-491.
24. LINDBECK, A. and WEIBULL, J. (1987), "Balanced-Budget Redistribution as the Outcome of Political Competition", Public Choice, 52, 273-297.
25. MIRRLEES, J. A. (1971), "An Exploration in the Theory of Optimum Income Taxation", Review of Economic Studies, 38, 175-208.
26. PERSSON, T. and TABELLINI, G. (1994a), "Is Inequality Harmful for Growth", American Economic Review, 84, 600-621.
27. PERSSON, T. and TABELLINI, G. (1994b), "Representative Democracy and Capital Taxation", Journal of Public Economics, 55, 53-70.
28. PHELAN, C. (2006), "Opportunity and Social Mobility", Review of Economic Studies, 73, 487-505.
29. PHELAN, C. and STACCHETTI, E. (2001), "Sequential Equilibria in a Ramsey Tax Model", Econometrica, 69, 1491- 1518.
30. SAEZ, E. (2002), "Optimal Progressive Capital Income Taxes in the Infinite Horizon" (Working Paper No. 9046, NBER).
31. SLEET, C. and YELTEKIN, S. (2006), "Credibility and Endogenous Social Discounting", Review of Economic Dynamics, 9, 410-437.
32. SLEET, C. and YELTEKIN, S. (2008a), "Allocation and Taxation in Uncommitted Societies" (Mimeo).
33. SLEET, C. and YELTEKIN, S. (2008b), "Politically Credible Social Insurance", Journal of Monetary Economics, 55, 129-151.