This paper studies the issue of the efficient taxation of capital income in intertemporal optimizing models with infinite horizons and endogenous population growth. We discover that, in the steady state, the optimal capital income tax is negative when the economy is closed. Instead, in a small...

This paper analyzes the consequences of lifting from labor some of the burden of taxation in a life-cycle two-sector setup where a consumption good is produced alongside a capital good. The analysis focuses on the implications of alternative ways of financing payroll tax cuts in closed and...

This paper examines the steady-state implications of anticipated inflation within an exogenous monetary growth model with liquidity costs and an endogenous labour supply. Whether or not money is superneutral depends upon the utility function chosen. Monetary growth leaves capital and labour...