Tax Policy Implications in Endogenous Growth Models

Bin Xu

No 1994/038, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; tax rate; rate of return; income tax; tax revenue; human capital; growth effect; capital production; income taxation; accumulation process; real rate of interest; per capita income; capital mobility; capital tax; Human capital; Income; Income tax systems; Consumption; Global (search for similar items in EconPapers)
Pages: 40
Date: 1994-03-01
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Citations: View citations in EconPapers (7)

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