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Lump-Sum Taxes in a R&D Model

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Author Info
Xin Long (Faculty of Economics, University of Rome "Tor Vergata")
Alessandra Pelloni () (Faculty of Economics, University of Rome "Tor Vergata")
Robert Waldmann () (Faculty of Economics, University of Rome "Tor Vergata")

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Abstract

Is it possible to increase growth and welfare by raising taxes and disposing of the tax revenues? We show this may indeed be the case in a simple model with endogenous technical change, represented by an increase in the variety of intermediate goods.

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File URL: ftp://www.ceistorvergata.it/repec/rpaper/RP120.pdf
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Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 120.

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Length: 16 pages
Date of creation: 14 Jul 2008
Date of revision: 14 Jul 2008
Handle: RePEc:rtv:ceisrp:120

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Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
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  1. Jinli Zeng & Jie Zhang, 2001. "Long-run growth effects of taxation in a non-scale growth model with innovation," Departmental Working Papers wp0104, National University of Singapore, Department of Economics. [Downloadable!]
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  2. Devereux, Michael B & Love, David R F, 1995. "The Dynamic Effects of Government Spending Policies in a Two-Sector Endogenous Growth Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 232-56, February. [Downloadable!] (restricted)
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  3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  4. Jones, Larry E. & Manuelli, Rodolfo E., 2005. "Neoclassical Models of Endogenous Growth: The Effects of Fiscal Policy, Innovation and Fluctuations," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 1, pages 13-65 Elsevier. [Downloadable!] (restricted)
  5. Turnovsky, Stephen J., 2000. "Fiscal policy, elastic labor supply, and endogenous growth," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 185-210, February. [Downloadable!] (restricted)
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  6. Gareth Myles, 2000. "Taxation and economic growth," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 141-168, March. [Downloadable!]
  7. Tetsugen Haruyama & Jun-ichi Itaya, 2006. "Do Distortionary Taxes Always Harm Growth?," Journal of Economics, Springer, vol. 87(2), pages 99-126, 03. [Downloadable!] (restricted)
  8. Lin, Hwan C. & Russo, Benjamin, 1999. "A Taxation Policy Toward Capital, Technology and Long-Run Growth," Journal of Macroeconomics, Elsevier, vol. 21(3), pages 463-491, July. [Downloadable!] (restricted)
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