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Distributive Policies and Economic Growth: an Optimal Taxation Approach

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Author Info

  • Rehme, G.

Abstract

In 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 Info

Paper provided by European University Institute in its series Economics Working Papers with number eco99/36.

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Length: 36 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:eui:euiwps:eco99/36

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Keywords: ECONOMIC GROWTH ; TAXATION ; INCOME DISTRIBUTION;

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Cited by:
  1. 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).

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