Arseneau, David M.; Chugh, Sanjay K.; Kurmann, André - Centre Interuniversitaire sur le Risque, les Politiques … - 2009
This paper clarifies the role of initial asset value constraints in Ramsey models of incomplete factor taxation. We show that the optimal long-run capital tax is zero in the long run if and only if there is no binding constraint on the initial capital tax rate. This finding contrasts with...
