 Analysis of a Two-Sector Model of Endogenous Growth with Capital Income TaxationInternational Economic Review, 1996, vol. 37, issue 1, 227-51 Abstract: This paper addresses a two-sector model of endogenous growth in which one sector produces final goods and the other produces new human capital. Both sectors employ human as well as physical capital under constant returns to scale technologies. Unlike existing studies of this type of model that have mostly concentrated on steady-state analysis or on numerical simulations of calibrated models, this paper presents an analytical argument concerning the dynamic behavior of the growth path and the effects of capital income taxation in and out of the steady-growth equilibrium. It is demonstrated that the dynamic behavior of the economy and some policy effects depend heavily upon the magnitude of factor intensity used in each production sector. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association. Date: 1996 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:37:y:1996:i:1:p:227-51 Ordering information: This journal article can be ordered from Access Statistics for this article International Economic Review is currently edited by Harold L. Cole More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.