Rent taxation and its intertemporal effects in a small open economy

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Standard

Rent taxation and its intertemporal effects in a small open economy. / Köthenbürger, Marko; Poutvaara, Panu.

In: International Tax and Public Finance, Vol. 16, No. 5, 2009, p. 697-709.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Köthenbürger, M & Poutvaara, P 2009, 'Rent taxation and its intertemporal effects in a small open economy', International Tax and Public Finance, vol. 16, no. 5, pp. 697-709. https://doi.org/10.1007/s10797-008-9085-9

APA

Köthenbürger, M., & Poutvaara, P. (2009). Rent taxation and its intertemporal effects in a small open economy. International Tax and Public Finance, 16(5), 697-709. https://doi.org/10.1007/s10797-008-9085-9

Vancouver

Köthenbürger M, Poutvaara P. Rent taxation and its intertemporal effects in a small open economy. International Tax and Public Finance. 2009;16(5):697-709. https://doi.org/10.1007/s10797-008-9085-9

Author

Köthenbürger, Marko ; Poutvaara, Panu. / Rent taxation and its intertemporal effects in a small open economy. In: International Tax and Public Finance. 2009 ; Vol. 16, No. 5. pp. 697-709.

Bibtex

@article{32ecddd03fb811de87b8000ea68e967b,
title = "Rent taxation and its intertemporal effects in a small open economy",
abstract = "Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation.",
keywords = "Faculty of Social Sciences, rent taxes, capitalization, transitional dynamics, labor supply, asset prices",
author = "Marko K{\"o}thenb{\"u}rger and Panu Poutvaara",
note = "JEL classification: H22, E62, F02",
year = "2009",
doi = "10.1007/s10797-008-9085-9",
language = "English",
volume = "16",
pages = "697--709",
journal = "International Tax and Public Finance",
issn = "0927-5940",
publisher = "Springer",
number = "5",

}

RIS

TY - JOUR

T1 - Rent taxation and its intertemporal effects in a small open economy

AU - Köthenbürger, Marko

AU - Poutvaara, Panu

N1 - JEL classification: H22, E62, F02

PY - 2009

Y1 - 2009

N2 - Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation.

AB - Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation.

KW - Faculty of Social Sciences

KW - rent taxes

KW - capitalization

KW - transitional dynamics

KW - labor supply

KW - asset prices

U2 - 10.1007/s10797-008-9085-9

DO - 10.1007/s10797-008-9085-9

M3 - Journal article

VL - 16

SP - 697

EP - 709

JO - International Tax and Public Finance

JF - International Tax and Public Finance

SN - 0927-5940

IS - 5

ER -

ID: 12236716