The paper begins with presentation of a methodology for computing rental costs of capital under any tax regime.Tax law … inflation on interest rates and the allocation of real capital. The model allocates a fixed private capital stock among various … classes of nonresidential and residential capital, depending upon the rental costs for the capital components, the price …

Second, even in the absence of fiscal costs, public debt reduces capital accumulation, and may therefore have welfare …-adjusted rate of return to capital. If it is lower than the growth rate, it indicates that the risk-adjusted rate of return to … capital is in fact low. The average risky rate however also plays a role. I show how both the average risky rate and the …

, and concentrates on the relationship between the degree of openness of the capital account and the transmission of foreign … shocks. More specifically, I ask whether restrictions to capital mobility and, in particular, controls on capital inflows of …

growth rate of the capital stock in the presence of a defined-benefit Social Security system. If the Social Security Trust … Fund increases the share of its portfolio held in risky capital, the equilibrium equity premium falls in the following … growth rate of capital in the following period, and, if a certain sufficient condition is satisfied, will increase the growth …

and income taxes; (b) make wealth taxes less efficient relative to capital income taxes, at given rates of tax; (c) reduce …