Essays in optimal taxation

Demir, Mehmet Tayyip (2019) Essays in optimal taxation. [Thesis]

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The mismatch between wealth level and entrepreneurial ability creates productive inefficiency in the market and under financial frictions, the credit market may not be able to solve this problem. In such a world, decreasing wealth inequality with capital taxation might be helpful in bringing the economy to its production possibilities frontier but capital taxation is costly as it distorts wealth creation. I derive optimal capital tax formulas that reflect this trade-off between productive efficiency benefit and wealth accumulation cost of capital taxes. With numerical analysis, I show that when the mismatch is high, government tends to intervene in the economy more and optimal capital taxes are higher. Also, having a lower elasticity of labor with respect to wage for agents leads to higher optimal taxation rate.
Item Type: Thesis
Uncontrolled Keywords: Optimal capital taxation. -- Entrepreneurial investment. -- Wealth creation. -- Productive efficiency. -- Optimal sermaye vergilendirmesi. -- Girişimci yatırımı. -- Varlık oluşumu. -- Üretim etkinliği.
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: 26 Aug 2019 11:12
Last Modified: 26 Apr 2022 10:30

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