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Optimal taxation, critical-level utilitarianism and economic growth

  • Luca Spataro


    (University of Pisa)

  • Thomas I. Renstroem


    (Durham Business School)

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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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
Date of revision:
Handle: RePEc:dur:durham:2010_06
Contact details of provider: Postal: Durham University Business School, Mill Hill Lane, Durham DH1 3LB, England
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  19. Yew, Siew Ling & Zhang, Jie, 2009. "Optimal social security in a dynastic model with human capital externalities, fertility and endogenous growth," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 605-619, April.
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  22. Valeria De Bonis & Luca Spataro, 2010. "Social discounting, migration, and optimal taxation of savings," Oxford Economic Papers, Oxford University Press, vol. 62(3), pages 603-623, July.
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  27. Spataro, Luca & De Bonis, Valeria, 2008. "Accounting for the "disconnectedness" of the economy in OLG models: A case for taxing capital income," Economic Modelling, Elsevier, vol. 25(3), pages 411-421, May.
  28. Nishimura, K. & Zhang, J., 1990. "Pay-As-You-Go Public Pensions With Endogenous Fertility," Papers 202, Australian National University - Department of Economics.
  29. De Bonis, Valeria & Spataro, Luca, 2005. "Taxing Capital Income As Pigouvian Correction: The Role Of Discounting The Future," Macroeconomic Dynamics, Cambridge University Press, vol. 9(04), pages 469-477, September.
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