Tax policy implications for a two‐engine growing economy.
In an endogenous growth model with two engines of R&D and capital, we investigate the environment of "inclusive growth" for tax reallocations (tax increases or tax credits) to gain broader benefits in terms of promoting the overall GDP growth without an increase in income inequality. Our results sho...
| Publicado en: | Southern Economic Journal Vol. 87; no. 3; pp. 979 - 1010 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Jan2021
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=148230345&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 148230345 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jan2021 vid: 87 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 148230345 10.1002/soej.12473 ppf: 979 ppct: 31 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 3.8MB tig: atl: Tax policy implications for a two‐engine growing economy. aug: au: Wang, Wei‐Neng Liu, Chia‐Ying Chang, Juin‐Jen affil: Department of International Business, National Taichung University of Science and Technology, Taichung, Taiwan Department of Economics, Aletheia University, Taipei, Taiwan Institute of Economics, Academia Sinica, Taipei, Taiwan su: Fiscal policy Taxation Income inequality Tax credits Tax rates sug: subj: Fiscal policy Taxation Income inequality Public Finance Activities Tax credits Tax rates keyword: inclusive growth tax policy two engines of growth wage differential inclusive growth tax policy two engines of growth wage differential ab: In an endogenous growth model with two engines of R&D and capital, we investigate the environment of "inclusive growth" for tax reallocations (tax increases or tax credits) to gain broader benefits in terms of promoting the overall GDP growth without an increase in income inequality. Our results show that a tax increase in the capital‐good sector can result in inclusive growth, boosting overall growth and reducing income inequality, provided that the status quo tax rate is not too high. Surprisingly, tax credits are not able to achieve such inclusive growth. While the GDP growth rises, a tax credit in the R&D sector not only increases income inequality but also decreases the aggregate employment, if the labor mobility cost between the final‐good and R&D/capital‐good sectors is relatively low. This provides a caution to policymakers given the fact that research tax credits have served as a common incentive to strengthen the R&D environment. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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