TY  - RPRT
        AU  - Palokangas, Tapio K.
        TI  - Optimal Taxation with Capital Accumulation and Wage Bargaining
        PY  - 2003/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 966
        UR  - https://www.iza.org/publications/dp966
        AB  - This study examines optimal taxation in a unionized economy in which households save
capital. The main findings are as follows. Judd’s (1985) and Chamley’s (1986) classical
results of zero taxation on capital income holds. This is true independently of workers’
savings behaviour or the capitalists’ weight in the social welfare function. The steady-state
optimal tax rates on wages and employment are specified. The consumption tax is needed
for revenue raising purposes.
        KW  - wage settlement
KW  - optimal taxation
KW  - capital accumulation
        ER  -