Speaker: Zhu Shenghao, Professor, University of International Business and Economics

Date: March 10, 2023

Time: 9:00-10:30

Location: B321, Zhixin Building, Central Campus

Sponsor: School of Economics, Shandong University

Abstract:

We study dynamic optimal taxation in a class of economies with private information. To investigate optimal nonlinear taxes in an economy with aggregate shocks, we first use a variational approach to characterize the optimal nonlinear tax schedule in the stationary equilibrium and find the role of the endogeneous distribution in the optimal long-run tax policy. We then introduce the aggregate shock to the heterogeneous agent model and employ the stochastic optimal control in infinite dimension to solve the optimal nonlinear tax schedule in a Krusell-Smith economy. The paper also shows that machine learning could be a powerful tool to solving the complicated dynamic systems in Macroeconomics.

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https://www.view.sdu.edu.cn/info/1020/176202.htm