Conesa, Juan C.; Domínguez, Begoña - Barcelona Graduate School of Economics (Barcelona GSE) - 2009
The standard analysis of optimal fiscal policy in the neoclassical growth model, e.g. Chamley (1986) and Judd (1985), aggregates different types of assets into a unique capital good and all sorts of capital taxes into a unique capital tax. There, the optimal capital tax rate is very high in the...