Fiscal policy and welfare in an endogenous growth model with heterogeneous endowments

This paper analyzes an endogenous growth model where agents have different factor endowments and government finances public expenditure by imposing two flat-tax rates, one on capital income and one on labor income. The main finding is that, in the absence of lump-sum redistributions, heterogeneity of endowments is crucial to determine the optimal fiscal policy; in particular, taxing capital income is always optimal.

MoreLess

Year of publication:	2003-01-01
Authors:	Fiaschi, Davide
Institutions:	Dipartimento di Economia e Management, Università degli Studi di Pisa
Subject:	Heterogeneous agents \| Efficiency \| Equity \| Majority voting

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Classification:	H21 - Efficiency; Optimal Taxation ; E13 - Neoclassical ; D31 - Personal Income, Wealth and Their Distributions ; D3 - Distribution ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005604246