Schmitt-Grohé, Stephanie (contributor); … - 2006
the fiscal authority is allowed to tax capital and labor income at different rates,
optimal fiscal policy is characterized … planner is constrained to follow
an income tax policy. That is, fiscal policy stipulates τ
h
t
= τ
k
t
= τ
φ
t
. Not … volatility
optimal.
When the fiscal authority is allowed to tax capital and labor income at different rates,
optimal fiscal …