We study the optimal taxation of risk-free and excess capital income with heterogeneous rates of return, alongside an … optimal nonlinear earnings tax. Households can hold three assets: one risk-free, one risky but diversifiable, and one a … private investment with idiosyncratic risk whose expected return differs among households. Contrary to expectations, the …

, framed in terms of distorted Arrow-Debreu pricing theory that establishes an equivalence between the optimal carbon tax and …

We look at the theory of arbitrage with taxation under certainty. The tax scale in our model is not linear. Under the …