Resource title

Optimal taxation with capital accumulation and wage bargaining

Resource image

image for OpenScout resource :: Optimal taxation with capital accumulation and wage bargaining

Resource description

This study examines optimal taxation in a unionized economy in which households save capital. The main findings are as follows. Judd?s (1985) and Chamley?s (1986) classical results of zero taxation on capital income holds. This is true independently of workers? savings behaviour or the capitalists? weight in the social welfare function. The steady-state optimal tax rates on wages and employment are specified. The consumption tax is needed for revenue raising purposes.

Resource author

Tapio Palokangas

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20202

Resource license

Adapt according to the presented license agreement and reference the original author.