Optimal Taxation of Risky Entrepreneurial Capital

We thank Teresa Steininger for superb research assistance and our discussants Nils Grevenbrock, Miguel- Angel López-García and Owen Zidar for insightful feedback. For many helpful comments, we thank Mark Bils, Yena Park, and seminar participants at the University of Essex, University of Leicester, University of St Andrews, University of Cologne, University of Bonn, SUNY Binghamton, University of Barcelona, University of Kent, University of Manchester Economic Theory Workshop 2018, London Workshop in Quantitative Macroeconomics 2019, the National Tax Association’s 113th Annual Conference on Taxation, and the 2022 European Summer Meeting of the Econometric Society. Support from the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) under Germany’s Excellence Strategy - EXC 2126/1 - 390838866 is gratefully acknowledged. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• April 19, 2022