Harberger`s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects …-country regressions and numerical simulations, using a new methodology for estimating aggregate effective tax rates. Results show …

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 …

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 …