Long‐Run Implications of Social Security Taxation for Growth and Fertility
Jie Zhang
Southern Economic Journal, 2001, vol. 67, issue 3, 713-724
Abstract:
This paper compares long‐run implications for growth and fertility of four types of taxation for social security with positive bequests. A tax rise under lump‐sum taxation enhances growth but lowers fertility, while other types of taxation do so under additional restrictions. A tax rise under consumption taxation is less likely to stimulate growth and to reduce fertility than under payroll taxation. A rise in an interest income tax raises fertility, reduces both savings and human capital investment, and hence is harmful for growth. The case with zero bequests is also discussed.
Date: 2001
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https://doi.org/10.1002/j.2325-8012.2001.tb00365.x
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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:67:y:2001:i:3:p:713-724
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