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.
Official URL: http://dx.doi.org/10.1111/caje.12370
Abstract
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 |
| Divisions: | Faculty of Arts and Social Sciences > Academic programs > Economics Faculty of Arts and Social Sciences |
| Depositing User: | Hakkı Yazıcı |
| Date Deposited: | 09 Aug 2019 00:29 |
| Last Modified: | 08 Jun 2023 14:24 |
| URI: | https://research.sabanciuniv.edu/id/eprint/38086 |
Available Versions of this Item
-
On the consequences of eliminating capital tax differentials. (deposited 20 Nov 2015 16:07)
-
On the consequences of eliminating capital tax differentials. (deposited 13 Aug 2018 21:45)
- On the consequences of eliminating capital tax differentials. (deposited 09 Aug 2019 00:29) [Currently Displayed]
-
On the consequences of eliminating capital tax differentials. (deposited 13 Aug 2018 21:45)
Actions (login required)
- View Item