heterogeneous-agent incomplete-markets (HAIM) economy, showing that a positive capital tax should be imposed to implement the so … possible if EIS is larger than 1 but the MGR does not hold and the corresponding capital tax is non-positive. The key to our …

of whether the Ramsey (1927) or the Mirrlees (1971) approach is adopted. First, a tax on capital equipment corrects the … “pecuniary externalities” caused by ESTP. The correction prescribes a downward or an upward adjustment of tax rates over time … prescribe an increasing marginal tax rate on labor income over time. Interestingly, we find that the prescribed pattern of …

of whether the Ramsey (1927) or the Mirrlees (1971) approach is adopted. First, a tax on capital equipment corrects the … 'pecuniary externalities' caused by ESTP. The correction prescribes a downward or an upward adjustment of tax rates over time … prescribe an increasing marginal tax rate on labor income over time. Interestingly, we find that the prescribed pattern of …