Tax Policy Implications in Endogenous Growth Models
March 1, 1994
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Summary
This paper surveys the tax policy implications in various endogenous growth models. The focus is on the long-run growth effects of income, consumption, and investment taxation in models whose engine of growth is the accumulation of human capital, technological innovation, and/or public infrastructure. The results depend on model specifications. This paper also reviews quantitative results from cross-country regressions and simulations, and indicates some statistical and methodological problems to which they are subject. Tax policy implications in endogenous growth models both with tax policy endogenously determined by a political process and with international capital mobility are also discussed.
Subject: Consumption, Human capital, Income, Income tax systems, Labor, National accounts, Revenue administration, Taxes
Keywords: accumulation process, capital mobility, capital production, capital tax, Consumption, Global, growth effect, human capital, Human capital, Income, income tax, Income tax systems, income taxation, per capita income, rate of return, real rate of interest, tax rate, tax revenue, WP
Pages:
40
Volume:
1994
DOI:
Issue:
038
Series:
Working Paper No. 1994/038
Stock No:
WPIEA0381994
ISBN:
9781451977554
ISSN:
1018-5941
