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Lump-Sum Taxes in a R&D Model



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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  • Xin Long & Alessandra Pelloni & Robert Waldmann, 2008. "Lump-Sum Taxes in a R&D Model," CEIS Research Paper 120, Tor Vergata University, CEIS, revised 14 Jul 2008.
  • Handle: RePEc:rtv:ceisrp:120

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    References listed on IDEAS

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    13. 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 232-256, February.
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