Abstract
The purpose of this paper is to illustrate how changes in various capital income may affect macroeconomic dynamics and the distribution of welfare across generations in a small open economy. Using a computable general equilibrium model with overlapping generations and an endogenous labour supply, three different kinds of capital income tax experiments are considered. I find that the old generations will benefit a cut in the tax on dividends and in the tax on interest whereas the younger generations benefit from a cut in the tax on capital gains
Original language | Danish |
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Journal | Nationaloekonomisk Tidsskrift |
Volume | 131 |
Issue number | 2 |
Pages (from-to) | 314-331 |
ISSN | 0028-0453 |
Publication status | Published - 1993 |
Externally published | Yes |