We study aggregate, distributional, and welfare effects of a permanent reduction in the capital tax rate in a dynamic … equilibrium model with capital-skill complementarity. Such a tax reform leads to expansionary long-run aggregate effects, but is … distortionary labor or consumption tax rates have to increase to finance the capital tax rate cut. An extension to a model with …

triggered the demand for income redistribution and wealth taxes not only to reduce inequality but also to reduce CO2 emissions …. This paper calculates the possible size of such a green dividend of redistribution in 26 countries and concludes that, for … most EU countries, it is negative if the redistribution is efficient, in the sense that it keeps average incomes constant …