The chamley-judd result of zero optimal capital taxation, Ask an Expert

Economics

The Chamley-Judd result of zero optimal capital taxation says that 0 capital taxation are required in order to maximize welfare at the steady state.

The result is 30 years old. Still assuming that we only care about the steady state, what's the literature's take on that? How esoteric is it? Or in other words, are there simple extensions of the model that completely overcome the result?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91408034

Have any Question?Write your Review or question?

Related Questions in Business Economics

If all countries eliminated all barriers to immigration

If all countries eliminated all barriers to immigration, would global economic growth increase? Why or why not?

Suppose after collecting data on an existing firms actual

Suppose, after collecting data on an existing firm's actual short-run ouput, the following production function is found to match the data: TP = Q = 5*L + 0.6*L2 - 0.01*L3 1. Using the equation above, find the following ...

Equipment maintenance costs for manufacturing

Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year one and increase by 3.5% each year through year five. What is the equivalent annual worth of the mainte ...

Calculate the present worth of all costs for a

Calculate the present worth of all costs for a newly acquired machine with an initial cost of $30,000, no trade-in value, a life of 15 years, and an annual operating cost of $13,000 for the first 4 years, increasing by 1 ...

Practical exercise 1assume the demand for teachers ld in a

Practical Exercise 1: Assume the demand for teachers (Ld) in a school is given by the following equation: W = 1700 - 2L D and the supply of teachers (L S ) depends on whether the school is a public school or private sch ...

A survey of internet users reported A survey of Internet users reported

A survey of Internet users reported that 20% downloaded music onto their computers. The filing of lawsuits by the recording industry may be a reason why this percent has decreased from the estimate of 27% from a survey t ...

Would it ever be rational for a firm to retain an employee

Would it ever be rational for a firm to retain an employee whose current marginal revenue product is less than her current wage? Explain.

After paying 150 you are allowed to open a newspaper

After paying $1.50, you are allowed to open a newspaper vending machine freely (i.e. get as many as you want). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. Why? Ple ...

Fully explain at least one reason why many developing

Fully explain at least one reason why many developing countries suffered serious debt crisis in the early 1980s. Does this reason you explained in debt support Krueger & Srinivasan's argument? Why or why not? How could t ...

The first part of the question is how do you determine if a

The first part of the question is how do you determine if a data set is normally distributed? The second part of the question is what is the Z score and how is that related to the distribution.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert