Replication data for: Taxing Capital? Not a Bad Idea after All!

Principal Investigator(s): View help for Principal Investigator(s) Juan Carlos Conesa; Sagiri Kitao; Dirk Krueger

Name	File Type	Size	Last Modified
DEMOGRAPHICS.F90	text/plain	3 KB	10/12/2019 04:51:AM
DISTRIBUTION.F90	text/plain	6.9 KB	10/12/2019 04:51:AM
EULER_EQN.F90	text/plain	1.1 KB	10/12/2019 04:51:AM
EVALUATE.F90	text/plain	3.6 KB	10/12/2019 04:51:AM
Fputil.f	text/x-fortran	21 KB	10/12/2019 04:50:AM
GHQUAD.DAT	text/plain	10.5 KB	10/12/2019 04:51:AM
GRID.F90	text/plain	379 bytes	10/12/2019 04:51:AM
GRIDTAX.F90	text/plain	1.1 KB	10/12/2019 04:50:AM
HOUSEHOLD.F90	text/plain	5.7 KB	10/12/2019 04:50:AM
LABOR.F90	text/plain	2.7 KB	10/12/2019 04:51:AM

Project Citation:

Conesa, Juan Carlos, Kitao, Sagiri, and Krueger, Dirk. Replication data for: Taxing Capital? Not a Bad Idea after All! Nashville, TN: American Economic Association [publisher], 2009. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113284V1

Project Description

Summary: We quantitatively characterize the optimal capital and labor income tax in an overlapping generations model with idiosyncratic, uninsurable income shocks and permanent productivity differences of households. The optimal capital income tax rate is significantly positive at 36 percent. The optimal progressive labor income tax is, roughly, a flat tax of 23 percent with a deduction of $7,200 (relative to average household income of $42,000). The high optimal capital income tax is mainly driven by the life-cycle structure of the model, whereas the optimal progressivity of the labor income tax is attributable to the insurance and redistribution role of the tax system. (JEL E13, H21, H24, H25)

Scope of Project

JEL Classification:
      E13 General Aggregative Models: Neoclassical
      H21 Taxation and Subsidies: Efficiency; Optimal Taxation
      H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
      H25 Business Taxes and Subsidies including sales and value-added (VAT)

Related Publications

Download this project

Published Versions

V1 [2019-10-12]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as received from the data depositor. As of April 2026, depositors are required to submit study materials in accessible formats. ICPSR has not reviewed, checked, or processed this material. For additional information about the study, please contact the investigator(s) directly. If you have questions about the accessibility of materials distributed by ICPSR or require further assistance, please visit ICPSR's Accessibility Center.