Rent taxation and its intertemporal welfare effects in a small open economy |
| |
Authors: | Marko Koethenbuerger Panu Poutvaara |
| |
Institution: | 1. Deparment of Economics, University of Vienna, Hohenstaufengasse 9, 1010, Vienna, Austria 2. Department of Economics, University of Helsinki, P.O. Box 17, Arkadiankatu 7, 00014, Helsinki, Finland
|
| |
Abstract: | Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|