Optimal capital income taxation under capital-skill complementarity

Kına, Özlem (2017) Optimal capital income taxation under capital-skill complementarity. [Thesis]

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This paper analyses the impact of capital-skill complementarity on optimal capital income taxation problem for a redistributive government. We compare an infinite horizon heterogeneous agents incomplete market model in which the technology exhibits capital-skill complementarity to a model in which we keep all the properties of the former but eliminate capital-skill complementarity. We find that under capital-skill complementarity the optimal tax rate on capital income is 0.71, whereas it is 0.24 for the no complementarity case. The former is significantly higher due to extra redistributive channel that results from the relation between capital accumulation and skill premium.
Item Type: Thesis
Additional Information: Yükseköğretim Kurulu Tez Merkezi Tez No: 483319.
Uncontrolled Keywords: Capital-skill complementarity. -- Capital income taxation. -- Skill premium. -- Incomplete markets. -- Redistribution. -- Sermaye-eğitim tamamlayıcılığı. -- Sermaye geliri vergilendirmesi. Eğitim primi. -- Eksik marketler. -- Yeniden bölüşüm.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: IC-Cataloging
Date Deposited: 10 May 2018 15:44
Last Modified: 26 Apr 2022 10:23
URI: https://research.sabanciuniv.edu/id/eprint/34778

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