This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Review: Vol. 100 No. 1 (March 2010)
AER Volume. 100, Issue 1 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
AER Forthcoming Articles
Full-text Article
Download Data Set (36.01 KB) | Appendix (123.63 KB)
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
AER Forthcoming Articles
Demographics and the Politics of Capital Taxation in a Life-Cycle Economy
Article Citation
Mateos-Planas, Xavier. 2010. "Demographics and the Politics of Capital Taxation in a Life-Cycle Economy."
American Economic Review,
100(1): 337-63.
DOI: 10.1257/aer.100.1.337
DOI: 10.1257/aer.100.1.337
Abstract
This article studies the effects of demographics on the mix of tax rates on labor
and capital. It uses a quantitative general-equilibrium, overlapping-generations
model where tax rates are voted without past commitments in every period
and characterized as a Markov equilibrium. In the United States, the younger
voting-age population in 1990 compared to 1965 accounts for the observed
decline in the relative capital tax rate between those two years. A younger population
raises the net return to capital, leads voters to increase their savings,
and results in a preference for lower taxes on capital. Conversely, aging might
increase capital taxation. (JEL E13, H24, H25, J11)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (36.01 KB) | Appendix (123.63 KB)
Authors
Mateos-Planas, Xavier (U Southampton)
JEL Classifications
E13: General Aggregative Models: Neoclassical
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)
J11: Demographic Trends and Forecasts; General Migration
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)
J11: Demographic Trends and Forecasts; General Migration
