Consumption Taxation, Social Status and Indeterminacy in Models of Endogenous Growth with Elastic Labor Supply

Jun-ichi Itaya () and Naoshige Kanamori

No 199, Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University

Abstract: This paper examines the effects of consumption taxation on longrun growth in an infinity-lived representative agent model of endogenous growth in which the desire for social status induces private agents to care about others’ wealth or consumption levels. We also allow for nonseparable preferences in own consumption, labor supply and social status that may cause indeterminacy of equilibrium. This analysis shows that consumption taxation generally raises (reduces) a long-run growth rate when the balanced growth path is indeterminate (determinate) in the models of wealth-induced social status and consumption externalities.

Keywords: Social Status; Endogenous Growth; Consumption Externality; Indeterminacy; Consumption Taxation; Endogenous Labor Supply; D62; D90; E62; O40; P10 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2008-04
New Economics Papers: this item is included in nep-dge
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2115/32614 (text/html)
https://eprints.lib.hokudai.ac.jp/dspace/bitstream/2115/32614/1/DPA199.pdf (application/pdf)

Related works:
Journal Article: Consumption taxation, social status and indeterminacy in models of endogenous growth with elastic labor supply (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hok:dpaper:199

Access Statistics for this paper

More papers in Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University Contact information at EDIRC.
Bibliographic data for series maintained by Hokkaido University Library ().