scholarly journals Factor income taxation, growth, and investment specific technological change

2016 ◽  
Vol 57 ◽  
pp. 133-152 ◽  
Author(s):  
Monisankar Bishnu ◽  
Chetan Ghate ◽  
Pawan Gopalakrishnan
Keyword(s):  
Technological Change ◽  
Income Taxation ◽  
Factor Income ◽  
Factor Income Taxation

A NOTE ON OPTIMAL CAPITAL TAXATION WITH PREFERENCE EXTERNALITIES

2018 ◽  
Vol 24 (3) ◽  
pp. 729-746 ◽  
Author(s):  
Cheng-Wei Chang ◽  
Ching-Chong Lai
Keyword(s):  
The United States ◽  
Income Taxes ◽  
Income Taxation ◽  
Capital Taxation ◽  
Neoclassical Growth Model ◽  
Factor Income ◽  
Status Seeking ◽  
Capital Tax ◽  
Optimal Capital ◽  
Neoclassical Growth

This paper extends the Chamley–Judd framework by introducing preference externalities in a neoclassical growth model, and finds that the optimal capital tax increases with the extent of social-status seeking or negative leisure externalities. Furthermore, this paper finds that differences in leisure externalities lead to a distinct impact on optimal factor income taxes, and hence may serve as a plausible vehicle to explain the empirical differences in factor income taxation in the United States and Europe.

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