On the consequences of eliminating capital tax differentials

Warning The system is temporarily closed to updates for reporting purpose.

Slavik, Ctirad and Yazıcı, Hakkı (2019) On the consequences of eliminating capital tax differentials. Canadian Journal of Economics, 52 (1). pp. 225-252. ISSN 0008-4085 (Print) 1540-5982 (Online)

This is the latest version of this item.

Full text not available from this repository.

Official URL: http://dx.doi.org/10.1111/caje.12370


In the United States, different types of capital are effectively taxed at different rates. In particular, effective tax rates on structures have been higher than those on equipments. Eliminating these differentials has been the subject of policy debates. This paper analyzes the consequences of eliminating capital tax differentials using an incomplete markets model with equipment-skill complementarity. The reform improves productive efficiency by eliminating distortions in capital accumulation. It also increases the degree of equality by reducing the skill premium. The reform increases average welfare by approximately 0.11%.

Item Type:Article
Subjects:H Social Sciences > HJ Public Finance
ID Code:38086
Deposited By:Hakkı Yazıcı
Deposited On:09 Aug 2019 00:29
Last Modified:09 Aug 2019 00:29

Available Versions of this Item

Repository Staff Only: item control page