This paper studies the effects of capital taxation in a dynamic heterogeneous-agent economy with uninsurable … impacts only labor income, here it is shown that capital taxation may actually stimulate capital accumulation. This … possibility emerges because of the general-equilibrium effects of the insurance aspect of capital taxation. In particular, for the …

, empirically implementable formulas for the incidence and efficiency costs of taxation that account for salience effects as well as …

, which would imply that dividend taxation creates large efficiency costs relative to the amount of revenue raised. I document …