Optimal taxation in life-cycle economics
We use a very standard life-cycle growth model, in which individuals have a labor-leisure choice in each period of their lives, to prove that an optimizing government will almost always find it optimal to tax or subsidize interest income. The intuition for our result is straightforward. In a life-cy...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
2002-08.
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| Subjects: | |
| Online Access: | Get fulltext |