Distributive Policies and Economic Growth: an Optimal Taxation Approach
AbstractIn an infinite-horizon, endogenous growth model a capital income cum investment subsidy tax is considered to investigate if distribution of income towards the non-accumulated factor of production (labour) retards growth and if capital income taxes are bad instruments to finance investment subsidies. The paper identifies conditions under which the tax scheme is better for growth that other distorting tax schemes.
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Bibliographic InfoPaper provided by European University Institute in its series Economics Working Papers with number eco99/36.
Length: 36 pages
Date of creation: 1999
Date of revision:
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ECONOMIC GROWTH ; TAXATION ; INCOME DISTRIBUTION;
Find related papers by JEL classification:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
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- Rehme, Günther, 2007.
"Endogenous Policy and Cross-Country Growth Empirics,"
Darmstadt Discussion Papers in Economics
35720, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Günther Rehme, 2011. "Endogenous Policy And Cross‐Country Growth Empirics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(2), pages 262-296, 05.
- G? Rehme, 2004. "Endogenous Policy and Cross-Country Growth Empirics," Econometric Society 2004 North American Summer Meetings 262, Econometric Society.
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