Capital Income Taxation and Self‐Fulfilling Aggregate Instability
推翻了传统观点，证明在考虑内生资本利用率时，依赖调整资本所得税平衡预算的政府可能因自我实现的预期而引发总体不稳定，并发现资本折旧补贴可作为一种稳定工具。
Abstract A general wisdom, since at least the work of Schmitt‐Grohé and Uribe (1997), holds that a government that relies on adjusting capital (rather than labor) income tax rate to balance its budget is immune to aggregate instability driven by self‐fulfilling expectations. This conventional wisdom is overturned in the present paper that augments the neoclassical framework with endogenous capital utilization. We show that the interaction between the capital tax rate and the capital utilization rate generates fiscal increasing returns and factor share redistribution to induce equilibrium indeterminacy. It is also shown that capital depreciation allowances can act as a stabilization device to preempt extrinsic instability. We demonstrate that self‐fulfilling instability can occur in real‐world economies, but that it can be prevented if capital depreciation allowance is combined with capital taxation to achieve budget objective.