Revisiting the capital tax ambiguity result

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Selim, Sheikh Tareq; Cardiff University;
  • Publisher: Cardiff University
  • Subject: HB | HF | HG

We provide a welfare based interpretation of the capital tax ambiguity result (due to Guo \ud & Lansing, 1999). We show that the sign ambiguity of optimal capital tax rate in an \ud imperfectly competitive economy is mainly due to the welfare cost of investment. The \ud... View more
  • References (6)

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