Tax Evasion, Human Capital, and Productivity-Induced Tax Rate Reduction
Max Gillman () and
Michal Kejak ()
Journal of Human Capital, 2014, vol. 8, issue 1, 42 - 79
Growth in the human capital sector's productivity explains in part how US postwar growth and welfare could have increased while US tax rates declined. Modeling tax evasion within an endogenous growth model with human capital, an upward trend in goods and human capital sectors gradually decreases tax evasion and allows for tax rate reduction. Using estimated goods and human capital sectoral productivities, the model explains 30 percent of the actual decline in a weighted average of postwar US top marginal personal and corporate tax rates. The productivity increases are asymmetric in a fashion related to that of McGrattan and Prescott.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to the online full text or PDF requires a subscription.
Working Paper: Tax Evasion, Human Capital, and Productivity Induced Tax Rate Reduction (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jhucap:doi:10.1086/675328
Access Statistics for this article
More articles in Journal of Human Capital from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().