We study optimal taxation of savings in an economy where agents face self-control problems and are allowed to be partially naive. We assume that the severity of self-control problems changes over the life-cycle. We focus on quasihyperbolic discounting with constant elasticity of intertemporal...

We study optimal bequest and capital taxation over the life-cycle in an OLG model. In this environment, we show that the efficient allocation can be implemented via age-dependent linear taxes/subsidies on capital income and bequests. First, as long as the degree of self-control problem is weakly...