Abstract
The problem of optimal redistributive capital income taxation in a differential game setup is studied. Following the influential works by Judd [3] and Chamley [1], it has been quite common in the economic literature to assume that the optimal limiting tax on capital income is zero. Using a simple model of capital income taxation, proposed originally by Judd, we show that the optimal tax can be different from zero under quite general assumptions. The main result is a sufficient condition for obtaining an appropriate solution to a differential game.
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Krastanov, M.I., Rozenov, R. (2008). On Optimal Redistributive Capital Income Taxation. In: Lirkov, I., Margenov, S., Waśniewski, J. (eds) Large-Scale Scientific Computing. LSSC 2007. Lecture Notes in Computer Science, vol 4818. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-78827-0_38
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DOI: https://doi.org/10.1007/978-3-540-78827-0_38
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-78825-6
Online ISBN: 978-3-540-78827-0
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