IMF Working Papers

Tax Policy Implications in Endogenous Growth Models

By Bin Xu

March 1, 1994

Preview Citation

Format: Chicago

Bin Xu. Tax Policy Implications in Endogenous Growth Models, (USA: International Monetary Fund, 1994) accessed November 1, 2024
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.

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

Keywords: Accumulation process, Capital mobility, Capital production, Capital tax, Consumption, Global, Growth effect, Human capital, Human capital, Income, Income tax, Income tax systems, Income taxation, Per capita income, Rate of return, Real rate of interest, Tax rate, Tax revenue, WP

Publication Details

  • Pages:

    40

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1994/038

  • Stock No:

    WPIEA0381994

  • ISBN:

    9781451977554

  • ISSN:

    1018-5941

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