dc.contributor.author | GOTTARDI, Piero | |
dc.contributor.author | KAJII, Atsushi | |
dc.contributor.author | NAKAJIMA, Tomoyuki | |
dc.date.accessioned | 2011-05-17T12:00:38Z | |
dc.date.available | 2011-05-17T12:00:38Z | |
dc.date.issued | 2011 | |
dc.identifier.issn | 1725-6704 | |
dc.identifier.uri | https://hdl.handle.net/1814/17218 | |
dc.description.abstract | We study the dynamic Ramsey problem of finding optimal public debt and linear taxes on capital and labor income within a tractable infinite horizon model with incomplete markets. With zero public expenditure and debt, it is optimal to tax the risky labor income and subsidize capital, while a positive amount of public debt is welfare improving. A steady state optimality condition is derived which implies that the tax on capital is positive, when savings are sufficiently inelastic to returns. A calibration of our model to the US economy indicates positive optimal taxes and a small but positive optimal debt level. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.relation.ispartofseries | EUI ECO | en |
dc.relation.ispartofseries | 2011/18 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | Incomplete markets | en |
dc.subject | Ramsey equilibrium | en |
dc.subject | Optimal taxation | en |
dc.subject | Optimal public debt | en |
dc.subject | Constrained inefficiency | en |
dc.subject | D52 | en |
dc.subject | D60 | en |
dc.subject | D90 | en |
dc.subject | E20 | en |
dc.subject | E62 | en |
dc.subject | H21 | en |
dc.subject | O40 | en |
dc.title | Optimal Taxation and Constrained Inefficiency in an Infinite-Horizon Economy with Incomplete Markets | en |
dc.type | Working Paper | en |
dc.neeo.contributor | GOTTARDI|Piero|aut|EUI70004 | |
dc.neeo.contributor | KAJII|Atsushi|aut| | |
dc.neeo.contributor | NAKAJIMA|Tomoyuki|aut| | |
eui.subscribe.skip | true | |