Rent taxation and its intertemporal effects in a small open economy
Research output: Contribution to journal › Journal article › Research › peer-review
Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation.
Original language | English |
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Journal | International Tax and Public Finance |
Volume | 16 |
Issue number | 5 |
Pages (from-to) | 697-709 |
Number of pages | 13 |
ISSN | 0927-5940 |
DOIs | |
Publication status | Published - 2009 |
- Faculty of Social Sciences - rent taxes, capitalization, transitional dynamics, labor supply, asset prices
Research areas
ID: 12236716