Capital Income Tax, Linear R&D Technology, and Economic Growth
MPRA Paper from University Library of Munich, Germany
This paper shows that, in a R&D-based growth model in which vertical and horizontal innovations occur simultaneously, increasing the capital income tax leads to faster growth. For this result to hold, the production function for both vertical and horizontal innovations must have constant returns to scale.
Keywords: Endogenous growth; Capital income tax; Vertical innovation; Horizontal Innovation; Scale effect. (search for similar items in EconPapers)
JEL-codes: H20 J22 O31 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-gro, nep-ino, nep-knm and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/78706/1/MPRA_paper_78706.pdf original version (application/pdf)
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:pra:mprapa:78706
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Series data maintained by Joachim Winter ().