The Effects of Taxation in a Kaleckian Growth Model

Anthony Laramie and Douglas Mair

Metroeconomica, 2003, vol. 54, issue 2‐3, 326-345

Abstract: We analyse the effects of balanced budget changes in the tax rates on wages and profits on the trend component of fixed investment, on the trend rate of growth of capital stock and on the trend rates of capacity utilization. A modified version of Kalecki's growth model is used to analyse the long‐term effects of taxation on the growth performance of the economy.

Date: 2003
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