Arbeitspapier

Optimal taxation with capital accumulation and wage bargaining

This study examines optimal taxation in a unionized economy in which households save capital. The main findings are as follows. Judd?s (1985) and Chamley?s (1986) classical results of zero taxation on capital income holds. This is true independently of workers? savings behaviour or the capitalists? weight in the social welfare function. The steady-state optimal tax rates on wages and employment are specified. The consumption tax is needed for revenue raising purposes.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 966

Classification
Wirtschaft
Trade Unions: Objectives, Structure, and Effects
Taxation and Subsidies: Efficiency; Optimal Taxation
Subject
wage settlement
optimal taxation
capital accumulation
Optimale Besteuerung
Investition
Sparen
Lohnbildung
Gewerkschaftlicher Organisationsgrad
Theorie

Event
Geistige Schöpfung
(who)
Palokangas, Tapio
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2003

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Palokangas, Tapio
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2003

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