Non-linear Capital Taxation Without Commitment

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Emmanuel Farhi ; Christopher Sleet ; Iván Werning ; Sevin Yeltekin (2012)
  • Publisher: Oxford University Press
  • Journal: Review of Economic Studies, volume 79, issue 4, pages 1,469-1,493
  • Related identifiers: doi: 10.1093/restud/rds001

We study efficient non-linear taxation of labour and capital in a dynamic Mirrleesian model incorporating political economy constraints. Policies are chosen sequentially over time, without commitment. Our main result is that the marginal tax on capital income is progres... View more
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