Capital Income Taxation Revisited: The Role of Credit Market Frictions
2007/12/25
研討會日期 : 2007-12-25
時間 : 15:00
主講人 : Prof. Yong Wang
地點 : C棟103室
演講者簡介 : Prof. Yong Wang 為Ph. D. in Economics，Brown University。
現為Associate Professor，City University of Hong Kong。
其主要研究領域為Macroeconomics, Financial Economics, and Monetary Economics。
演講摘要 : This paper reexamines the issue of optimal capital income taxation in an endogenous growth model with overlapping generations. By assuming costly state verification for capital producing projects, we show that the presence of the information asymmetry creates inefficiency in the credit market by driving a wedge between the rate of interest and the rate of transformation. In this context, we further show that capital income taxation worsens the credit market distortions and, subsequently, induces greater adverse effects on growth and welfare. Taken together, our analysis suggests that the presence of informational frictions in the credit market introduces a rationale for more conservative taxation on capital income from both growth and welfare perspectives.
