Optimal Ramsey taxation with endogenous risk aversion
Küçük Resim Yok
Tarih
2018
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Elsevier Science Sa
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
In this paper, we study optimal Ramsey taxation under endogenous risk aversion formulation in an otherwise standard real business cycle economy. We show that when the risk aversion coefficient co-moves counter-cyclically, the canonical Chamley-Judd (Chamley, 1986; Judd, 1985) result does not hold true, and the Ramsey planner chooses a positive capital income tax rate in the long run. We report that result is due to additional wedges both in the intratemporal and the intertemporal optimality condition of the representative household. (C) 2018 Elsevier B.V. All rights reserved.
Açıklama
Anahtar Kelimeler
Real Business Cycle Model, Time-Varying Risk Preferences, Optimal Tax Policy, Optimal Fiscal-Policy, Business-Cycle, Capital Income, General Equilibrium, Indivisible Labor, Time, Consistent, Behavior, Taxes, Model
Kaynak
Economics Letters
WoS Q Değeri
Q3
Scopus Q Değeri
Q2
Cilt
171
