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Taxation and Endogenous Growth in Open Economies [electronic resource] Roubini, Nouriel.

Author/Creator:
Roubini, Nouriel.
Publication:
Washington, D.C. : International Monetary Fund, 1994.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 94/77.
IMF Working Papers; Working Paper No. 94/77
Format/Description:
Government document
Book
1 online resource (36 p.)
Local subjects:
Bond issues.
Budget constraint.
Capital accumulation.
Capital flows.
Capital formation.
Capital gains.
Capital good.
Capital goods.
Capital income.
Capital income taxation.
Capital inflows.
Capital inputs.
Capital intensity.
Capital markets.
Capital mobility.
Capital ratio.
Capital stock.
Domestic bonds.
Domestic capital.
Fiscal affairs.
Fiscal affairs department.
Fiscal affairs departments.
Fiscal policy.
Foreign bonds.
Foreign capital.
Formal sector.
Government bonds.
Government budget.
Government budget constraint.
Government expenditure.
Government expenditures.
Government revenue.
Government spending.
Gross domestic product.
International capital.
International capital flows.
International capital markets.
Public debt.
Public expenditure.
Public expenditures.
Tax evasion.
Tax policy.
Tax rates.
Tax returns.
Tax revenues.
Tax system.
Taxation.
Taxation of labor.
Taxes on labor.
Portugal.
Summary:
This paper examines the effects of taxation of human capital, physical capital and foreign assets in a multi-sector model of endogenous growth. It is shown that in general the growth rate is reduced by taxes on capital and labor (human capital) income. When the government faces no borrowing constraints and is able to commit to a given set of present and future taxes, it is shown that the optimal tax plan involves high taxation of both capital and labor in the short run. This allows the government to accumulate sufficient assets to finance spending without any recourse to distortionary taxation in the long run. When restrictions to government borrowing and lending are imposed, the model implies that human and physical capital should be taxed similarly.
Notes:
Description based on print version record.
Contributor:
Milesi-Ferretti, Gian-Maria.
Roubini, Nouriel.
Other format:
Print Version:
ISBN:
145184994X:
9781451849943
ISSN:
1018-5941
Publisher Number:
10.5089/9781451849943.001
Access Restriction:
Restricted for use by site license.
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