چکیده:
The return of capital is fundamental to the intertemporal allocation of resources by changing the consumption behavior and capital accumulation over time. Taxation on return of capital increases the marginal product of capital، meaning that capital stock is lower than when capital is not taxed، which results decreased growth and welfare in steady state. This paper studies the impact of capital income taxation on capital stock، output and welfare in a dynamic optimization model. Theoretical and experimental results indicate that any attempt to decrease taxation on return of capital in Iran's economy، will be eventually reached to a higher capital formation، higher output and consumption per capita in the steady state. Finally، leads to higher welfare level in the steady state.
خلاصه ماشینی:
An Analysis the Effect of Capital Taxation on Allocation of Resources: A Dynamic Equilibrium Model Approach Hojjat Izadkhasti*1 Abbas Arabmazar2 Received: 2016/02/15 Accepted: 2016/06/13 Abstract he return of capital is fundamental to the intertemporal allocation ofresources by changing the consumption behavior and capital accumulation over time.
Taxation on return of capital increases the marginal product of capital, meaning that capital stock is lower than when capital is not taxed, which results decreased growth and welfare in steady state.
Theoretical and experimental results indicate that any attempt to decrease taxation on return of capital in Iran's economy, will be eventually reached to a higher capital formation, higher output and consumption per capita in the steady state.
Imrohoroglu (1998) studies the quantitative impact of eliminating capital income tax on capital accumulation and steady-state welfare in a general equilibrium model with overlapping generations of 65-period-lived individuals who face idiosyncratic earnings risk, borrowing constraints, and life-span uncertainty.
Aiyagari (1995) & Chamley (2001) in models with credit constraints have shown that capital income taxation may be desirable, even in the long 1.
2. See Summers (1981), Seidman (1984), Auerbach and Kotlikoff (1987), Pecorino (1994), Devereux and Love (1994), Turnovsky (2000), and Davies, Zeng and Zhang (2000).
In the steady state, the resulted change in capital stock, output, consumption per capita, and welfare are showed in table 12.
The results indicate that with reduction in tax on return to capital increased capital stock, output and consumption per capita, and welfare level in the steady state.