Fiscal policy and welfare in an endogenous growth model with heterogeneous endowments
This paper analyzes an endogenous growth model where agents have different factor endowments and government finances public expenditure by imposing two flat-tax rates, one on capital income and one on labor income. The main finding is that, in the absence of lump-sum redistributions, heterogeneity of endowments is crucial to determine the optimal fiscal policy; in particular, taxing capital income is always optimal.
|Date of creation:||01 Jan 2003|
|Contact details of provider:|| Postal: Via Cosimo Ridolfi, 10 - 56124 PISA|
Phone: +39 050 22 16 466
Fax: +39 050 22 16 384
Web page: http://www.ec.unipi.it
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pie:dsedps:2003/18. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.