Imrohoroglu, Selo; Imrohoroglu, Ayse; Fuster, Luisa - Society for Economic Dynamics - SED - 2007
We calibrate the model to the U.S. data and numerically characterize transition paths from the current tax system to a reformed system. All our experiments are revenue-neutral. Starting from the current tax code, we allow for transitions to reformed steady-states in which the capital income...