Optimal Taxation of Human and Physical Capital in Endogenous Capital ModelsNouriel Roubini, Gian Maria Milesi-Ferrett
NBER Working Paper No. 4882 This paper studies the effects of human and physical capital income taxation on growth, and examines how these effects depend on the technologies for human capital accumulation and 'leisure'. It then derives the normative implications of the analysis for the optimal taxation of factor incomes. It is shown that in general both capital and labor (human capital) taxes are growth-reducing. In these cases, the optimal long-run tax on both capital and labor income is zero. The optimal taxation plan consists of taxing both factors in the short run, and financing spending in the long run through accumulated budget surpluses.
Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): 10.3386/w4882 Published: Roubini, Nouriel and Gian Maria Milesi-Ferretti. "On the Taxation of Human and Physical Capital in Models of Endogenous Growth." Journal of Public Economics (1999). Users who downloaded this paper also downloaded* these:
|

Contact Us