Taxation of Interest Income in an Aging Japan: Simulation Analysis Using a Life-Cycle General Equilibrium Model
This chapter presents a detailed description of the life-cycle general equilibrium simulation model employed throughout this book, and provides a technical discussion of the algorithm used to find the equilibrium of the simulation model. This chapter addresses the problem of choosing among three tax bases, namely, labor income, interest income, and consumption, in terms of efficiency. It also investigates the effects of an interest income tax on household behavior and capital formation.
KeywordsLabor Income Public Pension Interest Income Lifetime Income Public Pension System
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