All Questions
Tagged with optimal-taxation macroeconomics
7 questions
1
vote
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Does a Homothetic Function with Respect to Consumption and Hours Worked Satisfy Certain Conditions in Fiscal Policy Models?
Proposition 3: If the utility function is homothetic with respect to consumption and hours worked, then the steady-state capital tax is zero.
Proof: This class of preference satisfies:
\begin{equation}...
- 77
1
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3
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144
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Net effect of govt spending and tax cuts
Let's say a government comes out with a new budget. This budget decreases income taxes in a more or less neutral way (neither progressive or regressive). However they also decrease government spending ...
- 169
1
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0
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41
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Set of implementable allocations (Overlapping Generations Models)
My question is from overlapping generations
$\Rightarrow$ I want to prove this part of the theorem
$\textbf{First}$ proceed by showing that the allocations in
a competitive equilibrium must satisfy(...
- 77
2
votes
0
answers
78
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Necessary conditions in overlapping generations model (OLG)
The consumer at each period maximizes
\begin{equation}
\displaystyle\sum_{i=1}^{I}\beta^{i-1}U(c^i_{t+i},l^i_{t+i}) , t=0,1,2,3,...
\end{equation}
subject to
\begin{equation}
(1+\eta_t)c^{i}_t+...
- 77
4
votes
2
answers
543
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The United States' position on the Laffer Curve
According to a 2012 IGM panel (cf. reference below), most experts believe that a federal income tax cut would lead to a higher GDP in five years, ceteris paribus. Is this effect purely Keynesian, and ...
- 151
3
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3
answers
381
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Why are there estate taxes after the owner passes away?
Isn't it unfair for estates to be taxed after death? The person who bequeathed the estate probably purchased it with after tax money, so wouldn't it then be taxed twice? What is the purpose of the tax ...
- 31
2
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2
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142
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Equality, Taxes & Business Growth
First, I'm not an economist - just a regular Joe interested in a small part of the subject.
Second, I apologize if this is a better question for the 'politics' stack exchange, but I figured I might ...
