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3 edition of Capital taxation and ownership when markets are incomplete found in the catalog.

Capital taxation and ownership when markets are incomplete

Emmanuel Farhi

Capital taxation and ownership when markets are incomplete

by Emmanuel Farhi

  • 323 Want to read
  • 24 Currently reading

Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

    Subjects:
  • Capital levy -- Mathematical models

  • About the Edition

    This paper analyzes the theoretical and quantitative implications of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets. The model features a representative-agent economy with proportional taxes on labor and capital. I first consider the case that the only asset the government can trade is a real risk-free bond. Taxes on capital are set one period in advance, reflecting inertia in tax codes and ruling out replication of the complete markets allocation. Because capital income varies with the state of the economy, capital taxation provides a state contingent source of revenues. I thus identify a novel potential role for capital taxation as a risk sharing instrument between the government and private agents. However, this benefit must be weighted again the distortionary cost of capital taxation. For a baseline case, the optimal policy features a zero tax on capital. Moreover, numerical simulations show that the baseline case provides an excellent benchmark. I next allow the government to hold a non trivial position in capital. Capital ownership provides the same benefit or risk sharing but without the cost of tax distortions. In a variety of quantitative exercises, I show that capital ownership allows the government to realize about 90% of the welfare gains from moving to complete markets. Large positions are typically required for optimality. But smaller positions achieve substantial benefits. In a business-cycle simulation, I show that a 15% short equity position achieves over 40% of the welfare gains from completing markets.

    Edition Notes

    StatementEmmanuel Farhi.
    SeriesNBER working paper series -- no. 13390., Working paper series (National Bureau of Economic Research) -- working paper no. 13390.
    ContributionsNational Bureau of Economic Research.
    The Physical Object
    Pagination44 p. :
    Number of Pages44
    ID Numbers
    Open LibraryOL17635098M
    OCLC/WorldCa173643599

    The third edition of Economic Foundations of Law introduces readers to the economic analysis of the major areas of the law: property law, torts, contracts, criminal law, civil procedure, corporation law and financial markets, taxation, and labor law. No prior knowledge of law is required, but a prior course in the principles of microeconomics would be quite helpful. One central reason why my book is relatively long is because I try to offer a detailed, multidimensional history of capital and its metamorphosis. Capital ownership takes many different historical forms, and each of them involves different forms of institutions, rules, and power relations, which must be Cited by: 5.

    Jun 05,  · An Introduction to International Capital Markets: Products, Strategies, Participants [Andrew M. Chisholm] on vassilyk.com *FREE* shipping on qualifying offers. Fully revised and updated from the hugely popular first edition, this book is an accessible and convenient one-volume introduction to international capital markets/5(2). capital markets and securities laws The Indian Capital market has grown exponentially in terms of resource mobilization, number of listed stocks, market capitalization, trading .

    Capital Taxation: Principles, Properties and Optimal Taxation Issues 1 Introduction France, like many European countries, experienced a signi–cant deterioration in its pub-lic –nances due to the –nancial and economic crisis which began in Since , in response, successive governments have been forced to greatly increase the rate. Mar 14,  · Taxation of capital and labor This chart is somewhat incomplete - it does not include the market value of financial sector equities (about $ trillion). it also increases the temptation to turn ownership of financial assets into a leveraging means of funding consumption. Reply Delete. Replies. Absalon March 19, at PM.


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Capital taxation and ownership when markets are incomplete by Emmanuel Farhi Download PDF EPUB FB2

This paper is a normative investigation of the theoretical and quantitative properties of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets.

The model features a representative-agent economy with linear taxes on labor and capital. I first allow the government to trade only a real risk-free vassilyk.com by: Capital Taxation and Ownership when Markets are Incomplete Emmanuel Farhi.

NBER Working Paper No. Issued in September NBER Program(s):Economic Fluctuations and Growth Program, Public Economics Program This paper analyzes the theoretical and quantitative implications of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets.

Get this from a library. Capital taxation and ownership when markets are incomplete. [Emmanuel Farhi; National Bureau of Economic Research.] -- This paper analyzes the theoretical and quantitative implications of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets.

The model features a. Capital Taxation and Ownership when Markets are Incomplete∗ Emmanuel Farhi Harvard [email protected] August 26th, Abstract This paper analyzes the theoretical and quantitative implications of optimal capital tax.

Capital Taxation and Ownership When Markets Are Incomplete ∗ Emmanuel Farhi Harvard [email protected] October 15, Abstract This paper is a normative investigation of the theoretical and quantitative properties of.

Downloadable. This paper analyzes the theoretical and quantitative implications of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets.

The model features a representative-agent economy with proportional taxes on labor and capital. I first consider the case that the only asset the government can trade is a real risk-free bond.

Downloadable (with restrictions). This paper is a normative investigation of the properties of optimal capital taxation in the neoclassical growth model with aggregate shocks and incomplete markets. The model features a representative-agent economy with linear taxes on labor and capital.

I first allow the government to trade only a real risk-free bond. Capital Taxation and Ownership When Markets Are Incomplete Article in Journal of Political Economy (5) · October with 13 Reads How we measure 'reads'.

Title: Optimal Capital Income Taxation With Incomplete Markets, Borrowing Constraints, and Constant Discounting Author: S. Rao Aiyagari Created Date. Books shelved as capital-markets: The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders by Connie Bruck, Technica.

Capital Markets: Books. 1 - 20 of results This book analyses the advantages and disadvantages of the banking system reforms with particular reference to centrally planned economies. The book reviews the socialist banking reforms and analyses their financial problems.

Employing a critical exposition of banking theories, it assesses. Capital gains taxation and inefficient block ownership Rüdiger Fahlenbrach, Dirk Jenter, and Eric Nowak* This Version: March 17, Preliminary and incomplete Abstract We analyze plausibly exogenous changes in corporate minority block ownership in Germany and their consequences for firm value.

the owners of the capital stock, which we view as the most natural setup in which to think of dividend and capital gains taxes. 3 The crucial difference is that we explicitly model dividend and capital gains taxes as opposed to assuming a general capital income tax on the return to capital.

This article is not intended as a literature review of capital market research in taxation. For literature reviews, readers can consult Shackelford and Shevlin,Graham,Hanlon and Heitzman, Instead, this article is based on our own experience with research in capital markets and taxes.

Therefore, it is biased and incompleteCited by: 4. Income taxation when markets are incomplete Theorem 1 establishes a set of sufficient conditions for marginal, per- sonal income tax reforms to provide social vassilyk.com: Mario Tirelli.

Optimal Capital Income Taxation with Incomplete Markets, Borrowing Constraints, and Constant Discounting S. Rao Aiyagari Federal Reserve Bank of Minneapolis For a wide class of infinitely lived agent models, Chamley has shown that the optimal capital income tax rate is zero in the long run. Lucas. Jan 04,  · In my view, Capital in the 21st Century is primarily a book about the history of the distribution of income and wealth.

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Capital Markets and Securities Laws Sort By: Latest Date Title Author ISBN Price INR Price USD Binding-Paperback Binding-Hardcover Stock Date of Publication Latest. Finance: Capital Markets, Financial Management, and Investment Management [Frank J.

Fabozzi, Pamela Peterson Drake] on vassilyk.com *FREE* shipping on qualifying offers. Created by the experienced author team of Frank Fabozzi and Pamela Peterson Drake, Finance examines the essential elements of this discipline and makes them accessible to a wide array of readers-from seasoned Cited by: the tax on bequests which they analyze is equivalent to a capital tax (p.Footnote 4).

Accordingly, the title of their working paper versionPiketty and Saez() is A Theory of Optimal Capital Taxation. 2 Recently,Straub and Werning() have called the zero-capital-tax result ofJudd () andChamley() into question.Finance Theory II (Corporate Finance) Katharina Lewellen February 5, reading a book or an article (see “readings”) Outline: Theory + Applications 15 Capital stock and capital surplus 2 10 11 1 3 12 5 11 24 28 16 16 Retained earnings 4 7 28 23 51 5 24 51 18 55