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dc.contributor.authorHilgers, Bodo
dc.contributor.authorSchindler, Dirk
dc.date.accessioned2006-08-03T07:12:37Z
dc.date.available2006-08-03T07:12:37Z
dc.date.issued2004-10
dc.identifier.issn0804-6824
dc.identifier.urihttp://hdl.handle.net/11250/162888
dc.description.abstractIn case of risk, especially aggregate risk which cannot be insured, the literature states that for achieving first-best optimality state-dependent lumpsum taxes are absolutely necessary. However, we show in a two-asset portfolio choice model that a suitably designed capital income tax can ensure a first-best solution without using state-dependent lump-sum taxes. Therefore, taxation must not focus on the single assets’ returns but on the prices of commodities, embedded in these assets. Hence, our tax system uses the prices for resource shifting into the future and for incurring risk as tax bases.en
dc.format.extent108118 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoengen
dc.publisherNorwegian School of Economics and Business Administration. Department of Economicsen
dc.relation.ispartofseriesDiscussion paperen
dc.relation.ispartofseries2004:26en
dc.subjectcapital income taxationen
dc.subjectoptimal taxationen
dc.subjectaggregate risken
dc.titleFirst-best optimality in capital income taxationen
dc.typeWorking paperen


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