Authors:Ignacio González, American UniversityJuan A. Montecino, American UniversityJoseph E. Stiglitz, Columbia University Abstract: We study the optimal design of corporate tax policy in a textbook life-cycle model featuring two key deviations: (i) firms are imperfectly competitive and (ii) households save by purchasing equity shares in a stock market. In this simple environment, the financial wealth […] The post Equity Prices, Market Power, and Optimal Corporate Tax Policy appeared first...
