Journal Article
The welfare loss from a capital income tax
Abstract: A decomposition of the welfare loss from a capital income tax into its two components: the intertemporal (consuming today versus tomorrow) and the within-period or static (consuming durable versus nondurable goods). Its calculations, which use a calibrated life-cycle model with a representative consumer, suggest that ignoring the static distortion may lead to substantial underestimation of the total welfare loss.
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https://fraser.stlouisfed.org/title/economic-review-federal-reserve-bank-cleveland-1328/1997-quarter-1-4338?page=3
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Review
Publication Date: 1997
Issue: Q I
Pages: 2-10