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The Resource Capital taxation : quantitative explorations of the Inverse Euler equation, Emmanuel Farhi [and] Ivan Werning
Capital taxation : quantitative explorations of the Inverse Euler equation, Emmanuel Farhi [and] Ivan Werning
Resource Information
The item Capital taxation : quantitative explorations of the Inverse Euler equation, Emmanuel Farhi [and] Ivan Werning represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in Boston University Libraries.This item is available to borrow from all library branches.
Resource Information
The item Capital taxation : quantitative explorations of the Inverse Euler equation, Emmanuel Farhi [and] Ivan Werning represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in Boston University Libraries.
This item is available to borrow from all library branches.
 Summary
 This paper studies the efficiency gains from distorting savings in dynamic Mirrleesian privateinformation economies. We develop a method that pertubs the consumption process optimally, while preserving incentive compatibility. The Inverse Euler equation holds at the new optimized allocation. Starting from an equilibrium where agents can save freely allows us to compute the efficiency gains from savings disortions. We investigate how these gains depend on a limited set of features of the economy. We find an important role for general equilibrium effects. In particular, efficiency gains are greatly reduced when, rather than assuming a fixed interest rate, decreasing returns to capital are incorporated with a neoclassical technology. We compute the efficiency gains for the incomplete market model in Aiyagari [1994] and find them to be relatively modest for the baseline calibration. For higher levels of uncertainty, the efficiency gains can be sizable, but we find that most of the improvements can then attributed to the relaxation of borrowing constraints, rather than the introduction of savings distortions. Keywords: Capital taxation, inverse Euler equation, constrained efficient, ChamleyJudds. JEL Classifications: E6, H2
 Language
 eng
 Edition
 Rev.
 Extent
 50 pages
 Note
 "November 30, 2005. Revised version: April 10, 2009."
 Label
 Capital taxation : quantitative explorations of the Inverse Euler equation
 Title
 Capital taxation
 Title remainder
 quantitative explorations of the Inverse Euler equation
 Statement of responsibility
 Emmanuel Farhi [and] Ivan Werning
 Title variation
 Quantitative explorations of the Inverse Euler equation
 Language
 eng
 Summary
 This paper studies the efficiency gains from distorting savings in dynamic Mirrleesian privateinformation economies. We develop a method that pertubs the consumption process optimally, while preserving incentive compatibility. The Inverse Euler equation holds at the new optimized allocation. Starting from an equilibrium where agents can save freely allows us to compute the efficiency gains from savings disortions. We investigate how these gains depend on a limited set of features of the economy. We find an important role for general equilibrium effects. In particular, efficiency gains are greatly reduced when, rather than assuming a fixed interest rate, decreasing returns to capital are incorporated with a neoclassical technology. We compute the efficiency gains for the incomplete market model in Aiyagari [1994] and find them to be relatively modest for the baseline calibration. For higher levels of uncertainty, the efficiency gains can be sizable, but we find that most of the improvements can then attributed to the relaxation of borrowing constraints, rather than the introduction of savings distortions. Keywords: Capital taxation, inverse Euler equation, constrained efficient, ChamleyJudds. JEL Classifications: E6, H2
 Cataloging source
 MYG
 http://library.link/vocab/creatorName
 Farhi, Emmanuel
 Illustrations
 illustrations
 Index
 no index present
 Literary form
 non fiction
 Nature of contents

 dictionaries
 bibliography
 technical reports
 http://library.link/vocab/relatedWorkOrContributorName

 Massachusetts Institute of Technology
 Internet Archive
 Werning, Iván
 Series statement
 Working paper series / Massachusetts Institute of Technology, Dept. of Economics
 Series volume
 working paper 0615 [2009 revision]
 http://library.link/vocab/subjectName

 Capital levy
 Saving and investment
 Capital levy
 Saving and investment
 Label
 Capital taxation : quantitative explorations of the Inverse Euler equation, Emmanuel Farhi [and] Ivan Werning
 Note
 "November 30, 2005. Revised version: April 10, 2009."
 Bibliography note
 Includes bibliographical references (p. 4850)
 Carrier category
 volume
 Carrier category code
 nc
 Carrier MARC source
 rdacarrier
 Color
 mixed
 Content category
 text
 Content type code
 txt
 Content type MARC source
 rdacontent
 Dimensions
 28 cm.
 Dimensions
 unknown
 Edition
 Rev.
 Extent
 50 pages
 Media category
 unmediated
 Media MARC source
 rdamedia
 Media type code
 n
 Other physical details
 illustrations
 Specific material designation
 remote
 System control number

 (OCoLC)671914962
 (OCoLC)ocn671914962
 Label
 Capital taxation : quantitative explorations of the Inverse Euler equation, Emmanuel Farhi [and] Ivan Werning
 Note
 "November 30, 2005. Revised version: April 10, 2009."
 Bibliography note
 Includes bibliographical references (p. 4850)
 Carrier category
 volume
 Carrier category code
 nc
 Carrier MARC source
 rdacarrier
 Color
 mixed
 Content category
 text
 Content type code
 txt
 Content type MARC source
 rdacontent
 Dimensions
 28 cm.
 Dimensions
 unknown
 Edition
 Rev.
 Extent
 50 pages
 Media category
 unmediated
 Media MARC source
 rdamedia
 Media type code
 n
 Other physical details
 illustrations
 Specific material designation
 remote
 System control number

 (OCoLC)671914962
 (OCoLC)ocn671914962
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