Autore
Rehme, Gunther

Titolo
Distributive policies and economic growth: An optmal taxation approach
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1999 - Fascicolo: 36 - Pagina iniziale: 1 - Pagina finale: 36

In an infinite-horizon, endogenous growth mode! a capitai income cum in-vestment subsidy tax is considered to investigate if distributiori of income towards thè non-accumulated factor of production (labour) retards growth and if capitai income taxes are bad Instruments to finance investment sub-sidies. The paper identifies conditions under which thè tax scherno is better for growth than other distorting tax schemes. In thè model a 'left-wing' (pro-labour) governrnent acts growth maximizing and distributing income towards labour raises growth. A 'right-wing' (pro-capital) government's preferred policy is not growth maximizing under thè tax scheme, but may generate higher growth than its optimal, growth maximizing policy under other tax schemes.



Testo completo: http://www.iue.it/ECO/WP-Texts/ECO99-36.pdf

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