Distributive Policies and Economic Growth: an Optimal Taxation Approach

Günther Rehme

Economics Working Papers from European University Institute

Abstract: In an infinite-horizon, endogenous growth model a capital income cum investment subsidy tax is considered to investigate if distribution of income towards the non-accumulated factor of production (labour) retards growth and if capital income taxes are bad instruments to finance investment subsidies. The paper identifies conditions under which the tax scheme is better for growth that other distorting tax schemes.

Keywords: ECONOMIC GROWTH; TAXATION; INCOME DISTRIBUTION (search for similar items in EconPapers)
JEL-codes: D33 H21 O41 (search for similar items in EconPapers)
Pages: 36 pages
Date: 1999
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Distributive Policies and Economic Growth: An Optimal Taxation Approach (2002)
Working Paper: Distributive Policies and Economic Growth: An Optimal Taxation Approach (2002)
Working Paper: Distributive Policies and Economic Growth: An Optimal Taxation Approach (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco99/36

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