Tax Policy Implications in Endogenous Growth Models

Author/Editor:

Bin Xu

Publication Date:

March 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper surveys the tax policy implications in various endogenous growth models. The focus is on the long-run growth effects of income, consumption, and investment taxation in models whose engine of growth is the accumulation of human capital, technological innovation, and/or public infrastructure. The results depend on model specifications. This paper also reviews quantitative results from cross-country regressions and simulations, and indicates some statistical and methodological problems to which they are subject. Tax policy implications in endogenous growth models both with tax policy endogenously determined by a political process and with international capital mobility are also discussed.

Series:

Working Paper No. 1994/038

Subject:

Consumption Human capital Income Income tax systems Labor National accounts Revenue administration Taxes

English

Publication Date:

March 1, 1994

ISBN/ISSN:

9781451977554/1018-5941

Stock No:

WPIEA0381994

Pages:

40

Please address any questions about this title to publications@imf.org