Kemp, Murray C; Long, Ngo Van; Shimomura, Koji - In: International Economic Review 34 (1993) 2, pp. 415-29
Consider the optimal time path of a tax on capital income, the proceeds of which are transferred to labor in a lump sum. It is known from earlier open-loop formulations that, if the optimal rate of tax converges to a point, it converges to zero, implying that, in the long run, a tax on capital...
