Optimal factor taxation in a scale free model of vertical innovation.

The objective of the paper is to study how the tax burden arising from an exogenous stream of public expenditures and transfers should be distributed between labor and capital in a scale‐less endogenous growth model, where the engine of growth are successful innovations. Our laboratory is a prototyp...

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Publicado en:Economic Inquiry Vol. 60; no. 2; pp. 794 - 831
Autores principales: Annicchiarico, Barbara, Antonaroli, Valentina, Pelloni, Alessandra
Formato: Artículo
Publicado: Wiley-Blackwell Apr2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Optimal factor taxation in a scale free model of vertical innovation.
      aug:
        au:
          Annicchiarico, Barbara
          Antonaroli, Valentina
          Pelloni, Alessandra
        affil:
          Department of Economics and Finance, University of Rome "Tor Vergata", Roma, Italy
          Central Bank of Malta, Valletta, Malta
      su:
        Public spending
        Optimal taxation
        Models & modelmaking
        Tax incidence
        Capital levy
      sug:
        subj:
          Public spending
          Public Finance Activities
          Optimal taxation
          Models & modelmaking
          Tax incidence
          Capital levy
      keyword:
        capital income taxation
        endogenous growth
        scale effects
        welfare effect
        capital income taxation
        endogenous growth
        scale effects
        welfare effect
      ab: The objective of the paper is to study how the tax burden arising from an exogenous stream of public expenditures and transfers should be distributed between labor and capital in a scale‐less endogenous growth model, where the engine of growth are successful innovations. Our laboratory is a prototypical quality ladder model with a labor/leisure choice where research and development productivity is decreasing in the size of the economy. Our contribution is to show that even when labor supply has no effects on growth in the long run, it will still be optimal to tax capital for reasonable parametrizations of the model.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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