Nonlinear taxation in an economy with heterogeneous firms and heterogeneous households

dc.contributor.authorBarro, Jorgeen_US
dc.contributor.authorBerkovich, Efraimen_US
dc.contributor.orgJames A. Baker III Institute for Public Policy
dc.date.accessioned2017-11-28T17:20:57Z
dc.date.available2017-11-28T17:20:57Z
dc.date.issued2017en_US
dc.description.abstractIn an economy with heterogeneous firms and heterogeneous consumers, we describe a general equilibrium where firm equity is priced by a supply and demand process. With a model robust to arbitrary, nonlinear tax functions, we investigate the efficiency of replacing the current U.S. tax regime with a policy of no corporate taxes and taxation of capital distributions to the household at progressive personal income tax rates. We find that this policy reduces wealth inequality and increases total welfare.en_US
dc.identifier.citationBarro, Jorge and Berkovich, Efraim. "Nonlinear taxation in an economy with heterogeneous firms and heterogeneous households." (2017) James A. Baker III Institute for Public Policy: <a href="https://www.bakerinstitute.org/research/barro-working-paper/">https://www.bakerinstitute.org/research/barro-working-paper/</a>.
dc.identifier.urihttps://hdl.handle.net/1911/98865
dc.language.isoengen_US
dc.publisherJames A. Baker III Institute for Public Policy
dc.relation.urihttps://www.bakerinstitute.org/research/barro-working-paper/
dc.rightsThis material may be quoted or reproduced without prior permission, provided appropriate credit is given to the author and Rice University's Baker Institute for Public Policy.
dc.subjectheterogeneous households
dc.subjectheterogeneous firms
dc.subjectcapital taxation
dc.subjectasset-pricing in incomplete markets
dc.titleNonlinear taxation in an economy with heterogeneous firms and heterogeneous households
dc.typeWorking paper
dc.type.dcmiText
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