In an economy with heterogeneous firms and heterogeneous consumers, the authors describe a general equilibrium where firm equity is priced by a supply and demand process. With a model robust to arbitrary, nonlinear tax functions, they investigate the efficiency of replacing the current U.S. tax regime with a policy of no corporate taxes and taxation of capital distributions to the household at progressive personal income tax rates.
This working paper is one of a series submitted for the Oct. 1, 2015, Baker Institute event "Currency Policy Then and Now: 30th Anniversary of the Plaza Accord."
Russell Green, David H. Papell, Ruxandra ProdanSeptember 16, 2015
This study attempts to apply a rigorous approach to developing a simple 20-year projection of growth and employment in India. It should provide motivation to the political leadership in state and central governments in India to pursue reforms ambitiously to remove barriers to labor-intensive manufacturing.