Progressive Taxation and Long-Run Growth

摘要

Since the emergence of early endogenous growth models (Larry E. Jones and Rodolfo E. Manuelli, 1990; Sergio Rebelo, 1991), a large body of work has studied the growth effects of tax reform. While virtually all of this literature has confined itself tothe analysis of flat-rate taxes, tax codes are generally progressive. This paper, therefore, explores the effects of progressive taxes in conventional growth models with heterogenous households, In such frameworks, the tax code helps to determine simultaneously the pre-tax income distribution and the rate of technical progress.