Rehme, Günther (2020)
Capital depreciation allowances, redistributive taxation, and economic growth.
In: Journal of Public Economic Theory, 25 (1)
doi: 10.1111/jpet.12603
Artikel, Bibliographie
Dies ist die neueste Version dieses Eintrags.
Kurzbeschreibung (Abstract)
Are capital depreciation allowances when coupled with capital income taxes good instruments for redistribution in the long run? In a simple two‐agent‐economy I find that accelerated depreciation is good for growth, but bad for redistribution. The opposite holds for capital income taxes. However, in a feedback Stackelberg equilibrium, where the government is the leader and the private sector the follower, the depreciation allowance is maximal in the long run, time‐consistent optimum. This removes the accumulation distortion of capital income taxes. Furthermore, the latter, and so redistribution, is found to be generically nonzero in the time‐consistent optimum, and depends on the social weight of transfers receivers, the pretax factor income distribution, the intertemporal elasticity of substitution and the time preference rate. Thus, accelerated depreciation allowances are an important indirect tool for redistribution. The tax scheme allows for a separation of "efficiency" and "equity" concerns for redistributive policies.
| Typ des Eintrags: | Artikel |
|---|---|
| Erschienen: | 2020 |
| Autor(en): | Rehme, Günther |
| Art des Eintrags: | Bibliographie |
| Titel: | Capital depreciation allowances, redistributive taxation, and economic growth |
| Sprache: | Englisch |
| Publikationsjahr: | 2020 |
| Ort: | Darmstadt |
| Verlag: | Wiley |
| Titel der Zeitschrift, Zeitung oder Schriftenreihe: | Journal of Public Economic Theory |
| Jahrgang/Volume einer Zeitschrift: | 25 |
| (Heft-)Nummer: | 1 |
| DOI: | 10.1111/jpet.12603 |
| Zugehörige Links: | |
| Kurzbeschreibung (Abstract): | Are capital depreciation allowances when coupled with capital income taxes good instruments for redistribution in the long run? In a simple two‐agent‐economy I find that accelerated depreciation is good for growth, but bad for redistribution. The opposite holds for capital income taxes. However, in a feedback Stackelberg equilibrium, where the government is the leader and the private sector the follower, the depreciation allowance is maximal in the long run, time‐consistent optimum. This removes the accumulation distortion of capital income taxes. Furthermore, the latter, and so redistribution, is found to be generically nonzero in the time‐consistent optimum, and depends on the social weight of transfers receivers, the pretax factor income distribution, the intertemporal elasticity of substitution and the time preference rate. Thus, accelerated depreciation allowances are an important indirect tool for redistribution. The tax scheme allows for a separation of "efficiency" and "equity" concerns for redistributive policies. |
| Sachgruppe der Dewey Dezimalklassifikatin (DDC): | 300 Sozialwissenschaften > 330 Wirtschaft |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Empirische Wirtschaftsforschung |
| Hinterlegungsdatum: | 02 Aug 2024 12:52 |
| Letzte Änderung: | 02 Aug 2024 12:52 |
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| Suche nach Titel in: | TUfind oder in Google |
Verfügbare Versionen dieses Eintrags
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Capital depreciation allowances, redistributive taxation, and economic growth. (deposited 28 Apr 2023 13:18)
- Capital depreciation allowances, redistributive taxation, and economic growth. (deposited 02 Aug 2024 12:52) [Gegenwärtig angezeigt]
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