Coto-Martínez, Javier; Garriga, Carlos; … - In: Journal of the European Economic Association 5 (2007) 6, pp. 1269-1299
In this article we explore the proposition that, in economies with imperfect competitive markets, the optimal capital income tax is negative and the optimal tax on firms' profits is confiscatory. We show that if the total factor productivity as well as the number of firms or varieties are...