Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Heterogeneous discount factors 

Working Paper
Capital Taxation with Heterogeneous Discounting and Collateralized Borrowing

We study optimal long-run capital taxation in a closed economy with heterogeneity in agents' time-discount factors where borrowing is allowed but restricted by a collateral constraint. Financial frictions distort intertemporal optimization margins and the tax system serves a dual role: first, it is used to finance government consumption; second, it serves to alleviate the distortions arising from the binding collateral constraint. The discrepancy between the private and the social discount factors pushes for a subsidy on capital, while the discrepancy introduced by the collateral constraint ...
Finance and Economics Discussion Series , Paper 2017-053

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E60 1 items

E61 1 items

E62 1 items

H21 1 items

PREVIOUS / NEXT