Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20202
Authors: 
Palokangas, Tapio
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion paper series 966
Abstract: 
This study examines optimal taxation in a unionized economy in which households save capital. The main findings are as follows. Judd?s (1985) and Chamley?s (1986) classical results of zero taxation on capital income holds. This is true independently of workers? savings behaviour or the capitalists? weight in the social welfare function. The steady-state optimal tax rates on wages and employment are specified. The consumption tax is needed for revenue raising purposes.
Subjects: 
wage settlement
optimal taxation
capital accumulation
JEL: 
J51
H21
Document Type: 
Working Paper

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