Economics, Econometrics and Finance
4 years ago

New study challenges tax norms, reshaping economic policies for uncertainty.

Computing in Economics and Finance
Optimal Capital-Labor Taxes under Uncertainty and Limits on Debt
Irina Yakadina

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Government debt and capital taxes may need major overhaul, study finds.

Infrastructure Impact
Tax Avoidance
Fiscal Policy
2 views
Economics, Econometrics and Finance
4 years ago

New tax strategy prevents under-investment in human capital and shirking

Infrastructure Impact
Tax Avoidance
Policy Reform
2 views
Economics, Econometrics and Finance
4 years ago

Optimal taxation strategy could improve welfare by taxing capital negatively.

Infrastructure Impact
Retirement Planning
Gender Inequality
2 views

The article explores how to determine the best taxes on capital and labor during economic ups and downs when markets are not fully complete. By adding a rule that limits short selling, the researchers found that capital income taxes should not always be zero, contrary to previous beliefs. This means that the optimal taxes on capital and labor can change depending on the economic situation and the rules in place.