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Intertemporal equilibrium with physical capital and financial asset: Role of dividend taxation

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  • Pham, Ngoc-Sang

Abstract

The paper introduces dividend taxation and productive government spending in an infinite-horizon general equilibrium model with heterogeneous agents and financial market imperfections. We point out that imposing a dividend tax and using the revenue from this tax to finance productive government spending may prevent economic recession and promote economic growth. We also investigate the issue of optimal dividend taxation and the role of dividend taxation on the asset price bubble.

Suggested Citation

  • Pham, Ngoc-Sang, 2023. "Intertemporal equilibrium with physical capital and financial asset: Role of dividend taxation," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 95-104.
    • Handle: RePEc:eee:matsoc:v:123:y:2023:i:c:p:95-104
    DOI: 10.1016/j.mathsocsci.2023.03.002
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    More about this item

    Keywords

    Intertemporal equilibrium; Recession; Economic growth; Productive government spending; Dividend taxation; Asset price bubbles;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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