Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives

Chamley, Christophe

doi:10.2307/1911310

Cited by 1,264 publications

(1,102 citation statements)

References 11 publications

Supporting

Mentioning

1,019

Contrasting

Unclassified

Order By: Relevance

“…5 We therefore consider the accuracy of the local linear approximation provided by our LQ approach in the case of disturbances of the amplitude assumed by Chari et al in their numerical work. We do this both by comparing our results with those obtained by Chari et al using their preferred method, and also by comparing them with those that would be obtained through a second-order perturbation analysis of the exact conditions characterizing optimal policy.…”

mentioning

confidence: 99%

Optimal Taxation in an RBC Model: A Linear-Quadratic Approach

Benigno¹,

Woodford²

2005

View full text Add to dashboard Cite

We reconsider the optimal taxation of income from labor and capital in the stochastic growth model analyzed by Chari et al. (1994Chari et al. ( , 1995, but using a linear-quadratic (LQ) approximation to derive a log-linear approximation to the optimal policy rules. The example illustrates how inaccurate "naive" LQ approximation -in which the quadratic objective is obtained from a simple Taylor expansion of the utility function of the representative household -can be, but also shows how a correct LQ approximation can be obtained, which will provide a correct local approximation to the optimal policy rules in the case of small enough shocks. We also consider the numerical accuracy of the LQ approximation in the case of shocks of the size assumed in the calibration of Chari et al. We find that the correct LQ approximation yields results that are quite accurate, and similar in most respects to the results obtained by Chari et al. using a more computationally intensive numerical method. * Presented by the second author as a Plenary Lecture at

show abstract

mentioning

confidence: 99%

Optimal Taxation in an RBC Model: A Linear-Quadratic Approach

Benigno¹,

Woodford²

2005

View full text Add to dashboard Cite

show abstract

“…There are well known reasons based on Atkinson & Stiglitz (1976), the considerations in Judd (1985) and Chamley (1986), and the administrative costs savings highlighted by Andrews (1974) for preferring consumption taxation.…”

Section: The Optimal Base Is Consumptionmentioning

confidence: 99%

The Use of Neutralities in International Tax Policy

Weisbach

2014

SSRN Journal

View full text Add to dashboard Cite

“…Uma observação deve ser feita, como essa simulação elimina os tributos distorcivos e aumenta muito o capital da economia, esse será o maior aumento que observamos nas horas trabalhadas. Esses resultados corroboram a hipótese de Chamley (1986) de que a taxação sobre a renda do capital deveria ser nula, aumentando assim o estoque de capital, a produtividade do trabalho, a renda e o bem estar da população. Por fim, a razão consumo/produto diminuiria para 78% (ante 83% atuais), sendo esse consumo a soma do consumo público e do consumo privado, pois ambos são valorados pelo planejador com a mesma importância.…”

Section: Planejador Central: Investimento Público óTimounclassified

Impactos de longo prazo de reformas fiscais sobre a economia brasileira

Santana¹,

Cavalcanti²,

Paes³

2012

Rev. Bras. Econ.

View full text Add to dashboard Cite

Este trabalho objetiva analisar o impacto de uma redução da carga tributária brasileira e aumento do investimento público, empregando um modelo de equilíbrio geral com crescimento exógeno, calibrando o modelo com dados de 2010. Os resultados sugerem que o consumo das administrações públicas é elevado e que o investimento público está abaixo do ideal. Simulações de política fiscal sugerem que apenas a redução da carga tributária não é favorável para a economia, mas a elevação do investimento público provocaria grandes alterações no nível de capital e bem-estar, bem como elevação real de arrecadação, apesar da queda da carga tributária. This paper aims to analyze the impact of a reduction in Brazilian tax burden and increasing public investment, using a general equilibrium model with exogenous growth, calibrating the model with data from 2010. The results suggest that the current government spending is high and public investment is less than optimal. Simulations in fiscal policy suggest that only tax reduction is not good for the economy, but the increase in public investment would lead to major changes in the level of capital and welfare, and raising real revenue, despite lower tax burden. INTRODUÇÃOO objetivo principal deste trabalho é analisar a relação entre os gastos públicos no Brasil e seu impacto sobre a economia, estimando qual deveria ser o consumo público, através de um exercício econométrico, e o gasto ótimo em investimento, a partir de um modelo de crescimento exógeno. A * Doutoranda em Economia pelo PIMES-UFPE. Endereço para correspondência: Rua Estevão de Sá, 390, Bloco 1, Apto. 103 -

show abstract

Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives

Cited by 1,264 publications

References 11 publications

Optimal Taxation in an RBC Model: A Linear-Quadratic Approach

Optimal Taxation in an RBC Model: A Linear-Quadratic Approach

The Use of Neutralities in International Tax Policy

Impactos de longo prazo de reformas fiscais sobre a economia brasileira

Contact Info

Product

Resources

About