IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v173y2018icp6-9.html
   My bibliography  Save this article

Aggregate implications of the tax reform of 2017: Can taxes guide technology?

Author

Listed:
  • Moscoso Boedo, Hernan

Abstract

This paper analyzes the effects of the US tax reform of 2017 using a model of endogenous technological adoption. The lower tax levels induce large human capital investments that are augmented by the endogenous transition towards skill biased technologies.

Suggested Citation

  • Moscoso Boedo, Hernan, 2018. "Aggregate implications of the tax reform of 2017: Can taxes guide technology?," Economics Letters, Elsevier, vol. 173(C), pages 6-9.
    • Handle: RePEc:eee:ecolet:v:173:y:2018:i:c:p:6-9
    DOI: 10.1016/j.econlet.2018.09.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176518303872
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2018.09.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rodolfo E. Manuelli & Ananth Seshadri, 2014. "Human Capital and the Wealth of Nations," American Economic Review, American Economic Association, vol. 104(9), pages 2736-2762, September.
    2. Moscoso Boedo, Hernan J., 2010. "Optimal technology and development," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 617-634, June.
    3. repec:bin:bpeajo:v:49:y:2019:i:2018-01:p:257-345 is not listed on IDEAS
    4. Claudio E. Montenegro & Harry Anthony Patrinos, 2014. "Comparable Estimates of Returns to Schooling Around the World," Working Papers wp390, University of Chile, Department of Economics.
    5. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    6. Robert J. Barro & Jason Furman, 2018. "Macroeconomic Effects of the 2017 Tax Reform," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 257-345.
    7. Lee, Jong-Wha & Lee, Hanol, 2016. "Human capital in the long run," Journal of Development Economics, Elsevier, vol. 122(C), pages 147-169.
    8. Funk, Peter & Vogel, Thorsten, 2004. "Endogenous skill bias," Journal of Economic Dynamics and Control, Elsevier, vol. 28(11), pages 2155-2193, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saeed Solaymani, 2020. "Assessing the economic and social impacts of fiscal policies," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(3), pages 671-694, March.
    2. Chang, Kai & Long, Yu & Yang, Jiahui & Zhang, Huijia & Xue, Chenqi & Liu, Jianing, 2022. "Effects of subsidy and tax rebate policies on green firm research and development efficiency in China," Energy, Elsevier, vol. 258(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moscoso Boedo, Hernan J., 2010. "Optimal technology and development," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 617-634, June.
    2. Campbell, Susanna G. & Üngör, Murat, 2020. "Revisiting human capital and aggregate income differences," Economic Modelling, Elsevier, vol. 91(C), pages 43-64.
    3. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    4. Peter H. Lindert, 2017. "The Rise and Future of Progressive Redistribution," Commitment to Equity (CEQ) Working Paper Series 73, Tulane University, Department of Economics.
    5. Leandro Prados de la Escosura & Joan R. Rosés, 2021. "Accounting For Growth: Spain, 1850–2019," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 804-832, July.
    6. Konstantinos Angelopoulos & Andrea Benecchi & James Malley, 2017. "Can subsidising job-related training reduce inequality?," Working Papers 2017_10, Business School - Economics, University of Glasgow.
    7. Muhammad Qahraman Kakar, 2021. "Ethnic Disparities, Women Education and Empowerment in South Asia," Erudite Ph.D Dissertations, Erudite, number ph21-01 edited by Manon Domingues Dos Santos, December.
    8. Audra J. Bowlus & Haoming Liu & Chris Robinson, 2005. "Human Capital, Productivity and Growth," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20052, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    9. Ouedraogo, Idrissa & Ngoa Tabi, Henri & Atangana Ondoa, Henri & Jiya, Alex Nester, 2022. "Institutional quality and human capital development in Africa," Economic Systems, Elsevier, vol. 46(1).
    10. Yu, Mingzhe & Deng, Xin, 2021. "The Inheritance of Marketization Level and Regional Human Capital Accumulation: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    11. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 3-69, Elsevier.
    12. Federico Rossi, 2022. "The Relative Efficiency of Skilled Labor across Countries: Measurement and Interpretation," American Economic Review, American Economic Association, vol. 112(1), pages 235-266, January.
    13. Konstantinos Angelopoulos & Andrea Benecchi & Jim Malley, 2017. "Can Subsidising Job-Related Training Reduce Inequality?," CESifo Working Paper Series 6605, CESifo.
    14. Remi Jedwab & Paul Romer & Asif M. Islam & Roberto Samaniego, 2023. "Human Capital Accumulation at Work: Estimates for the World and Implications for Development," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(3), pages 191-223, July.
    15. Matteo Cervellati & Gerrit Meyerheim & Uwe Sunde, 2023. "The empirics of economic growth over time and across nations: a unified growth perspective," Journal of Economic Growth, Springer, vol. 28(2), pages 173-224, June.
    16. Ana Hidalgo-Cabrillana & Zoë Kuehn & Cristina Lopez-Mayan, 2017. "Development accounting using PIAAC data," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(4), pages 373-399, November.
    17. Tamura, Robert & Dwyer, Jerry & Devereux, John & Baier, Scott, 2019. "Economic growth in the long run," Journal of Development Economics, Elsevier, vol. 137(C), pages 1-35.
    18. Dawson, John W. & Sturgill, Brad, 2022. "Market Institutions and Factor Shares Across Countries," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 266-289.
    19. Mandal, Abir & Regmi, Narendra & Tamura, Robert, 2021. "Education, Fertility and Incomes in the States of India: Demographic Transition," MPRA Paper 110378, University Library of Munich, Germany.
    20. Sharmila Devadas & Ibrahim Elbadawi & Norman V. Loayza, 2019. "Growth After War in Syria," Working Papers 1340, Economic Research Forum, revised 21 Aug 2019.

    More about this item

    Keywords

    Endogenous skill biased technical change; Tax policy;

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:173:y:2018:i:c:p:6-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.