Optimal taxation in a growth model with public consumption and home production

Zhang, J., Davies, J., Zeng, J. and McDonald, S. (2008) Optimal taxation in a growth model with public consumption and home production. Journal of Public Economics, 92 3-4: 885-896. doi:10.1016/j.jpubeco.2007.09.008

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Author Zhang, J.
Davies, J.
Zeng, J.
McDonald, S.
Title Optimal taxation in a growth model with public consumption and home production
Journal name Journal of Public Economics   Check publisher's open access policy
ISSN 0047-2727
Publication date 2008-04-01
Year available 2007
Sub-type Article (original research)
DOI 10.1016/j.jpubeco.2007.09.008
Open Access Status DOI
Volume 92
Issue 3-4
Start page 885
End page 896
Total pages 11
Editor Saez, E.
Boadway, R.
Place of publication Netherlands
Publisher Elsevier B V, North Holland
Language eng
Subject 140399 Econometrics not elsewhere classified
1401 Economic Theory
970101 Expanding Knowledge in the Mathematical Sciences
970114 Expanding Knowledge in Economics
Abstract In a neoclassical growth model with public consumption, we show the following Pareto optimal tax rules. The government should tax leisure and private consumption at the same rate, and subsidize net investment at the same rate it taxes net capital income. Also, it should tax capital income more heavily than labor income. In an extension for home production, the additional rule is to tax investment for home production at the same rate of the tax on private market consumption. These tax and subsidy rates should be constant over time except the initial tax rate on capital income.
Keyword Home production
Optimal taxation
Public consumption
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 4 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 3 times in Scopus Article | Citations
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Created: Mon, 20 Apr 2009, 02:24:37 EST by Kaelene Matts on behalf of School of Economics