constrained social optimality. We then conduct tax incidence exercises in balanced growth by calibrating to the U.S. economy with … a pre-existing 20% flat tax on capital and labor income. Our quantitative results suggest that, due to a dominant … stocks. This main finding is robust even along the transition with time-varying factor tax rates. Moreover, our quantitative …

are growth-reducing. In these cases, the optimal long-run tax on both capital and labor income is zero. The optimal …

distortionary taxes. We show that for certain parameters values and tax schemes every equilibrium orbit--except the steady state …

This paper explores how revenue-neutral tax reforms impact employment and economic growth in a model of endogenous … tax swaps between wage income taxes, payroll taxes, capital income taxes and taxes levied on capital costs. In our … framework, the payroll tax is found to be neutral. If this tax is used to finance a cut in the capital income tax, we will …

This paper explores how revenue-neutral tax reforms impact employment and economic growth in models of exogenous and … endogenous growth and search frictions on the labor market. We show that (i) a cut in the payroll tax financed by an increase in … the wage tax lowers both equilibrium employment and the equilibrium growth rate, that (ii) a higher energy tax combined …