Growth Effects of Progressive Taxation

Topics:
Taxes
Tags:
Federal Reserve Board,
Finance,
Financial Planning,
Free Trade,
Growth,
Taxes
Source:
The Federal Reserve Board

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Overview: This paper discusses that allowing for heterogeneous households and progressive taxes into otherwise conventional linear growth models radically changes these predictions. In particular, economic growth does not have to fall, and may even increase, with the share of government expenditures in output across countries.

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Format: PDF | Size: 1,914KB | Date: Jan 2003 | Pages: 31

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