EconStor >
Bank of Canada, Ottawa >
Bank of Canada Working Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/53853
  
Title:Uninsurable investment risks and capital income taxation PDF Logo
Authors:Meh, Césaire A.
Terajima, Yaz
Issue Date:2009
Series/Report no.:Bank of Canada Working Paper 2009,3
Abstract:This paper studies the capital accumulation and welfare implications of reducing capital income taxation in a general equilibrium economy with uninsurable investment risks. It has been shown that, with uninsurable investment risks, under-accumulation of capital may result compared to the complete markets economy. We show that reducing somewhat the capital income tax rate increases the capital stock and leads to a welfare gain. The complete elimination of the capital income tax, however, is not necessarily welfare improving.
Subjects:Economic models
JEL:E21
E22
E62
G32
H24
H25
Document Type:Working Paper
Appears in Collections:Bank of Canada Working Papers

Files in This Item:
File Description SizeFormat
592148947.pdf257.27 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/53853

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.