Angelopoulos, Konstantinos; Asimakopoulos, Stylianos; … - Centre for Finance, Credit and Macroeconomics (CFCM), …
This paper analyses optimal income taxation over the business cycle for households di¤erentiated by labour skill, income and wealth. A model incorporating capital-skill complementarity in production and di¤erential access to labour and capital markets is developed to capture the cyclical...