Taxation, bubbles and endogenous growth

Stefano Bosi and Ngoc-Sang Pham

Economics Letters, 2016, vol. 143, issue C, 73-76

Abstract: We study the interplay between taxation, bubble formation and economic growth. A rational bubble may be beneficial when growth is fueled by public investment (or R&D externalities) and the government levies taxes on bubble returns to finance this investment. Our main result challenges the conventional view about the negative effect of bubbles in endogenous growth (Grossman and Yanagawa, 1993).

Keywords: Taxation on financial revenue; Public R&D; Endogenous growth (search for similar items in EconPapers)
JEL-codes: E44 H23 O30 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Taxation, bubbles and endogenous growth (2016)
Working Paper: Taxation, bubbles and endogenous growth (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:143:y:2016:i:c:p:73-76

DOI: 10.1016/j.econlet.2016.03.018

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