A Re-examination of Economic Growth, Tax Policy, and Distributive Politics∗
نویسندگان
چکیده
We examine the relationship between economic growth, tax policy, and the distribution of capital and labor ownership in a one-sector political-economy model of endogenous growth with productive government spending Þnanced by a proportional tax on capital income. Our analysis shows that inequality in wealth and income can be positively or negatively related to the optimal tax rate. In either environment, inequality leads to a lower after-tax return to capital, thereby reducing the economys growth rate.
منابع مشابه
Tax Policy and Economic Growth in the Developing and Developed Nations
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