Rent taxation and its intertemporal welfare effects in a small open economy
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.
Year of publication: |
2009
|
---|---|
Authors: | Koethenbuerger, Marko ; Poutvaara, Panu |
Institutions: | Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München |
Saved in:
Saved in favorites
Similar items by person
-
Why are more redistributive social security systems smaller? A median voter approach
Koethenbuerger, Marko, (2008)
-
Why are more redistributive social security systems smaller? : A median voter approach
Koethenbuerger, Marko, (2005)
-
Rent taxation and its intertemporal welfare effects in a small open economy
Koethenbuerger, Marko, (2007)
- More ...