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Optimal taxation, critical-level utilitarianism and economic growth

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  • Luca Spataro

    ()
    (University of Pisa)

  • Thomas I. Renstroem

    ()
    (Durham Business School)

Abstract

In this work we analyze the issue of taxation in an intertemporal economy with endogenous fertility under critical-level utilitarianism, both from a positive and normative standpoint. On the positive side we analyse the effects of a change in the tax on capital income and on the population size, both separately and in a policy aiming at maintaining per-capita debt constant. On the normative side, we characterize the first-best and second- best optimal tax structures both when labour supply is exogenous and endogenous.

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Bibliographic Info

Paper provided by Durham University Business School in its series Working Papers with number 2010_06.

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Date of creation: 01 Jan 2010
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Handle: RePEc:dur:durham:2010_06

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Postal: Durham University Business School, Mill Hill Lane, Durham DH1 3LB, England
Phone: +44 (0)191 334 5200
Fax: +44 (0)191 334 5201
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Web page: http://www.dur.ac.uk/business
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Keywords: Taxation; endogenous fertility; critical level utilitarianism; population.;

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References

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Cited by:
  1. Thomas Renstrom & Luca Spataro, 2014. "Population growth and human capital: a welfarist approach," Public Finance Research Papers 3, Istituto di Economia e Finanza, DIGEF, Sapienza University of Rome.

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