On and Off the Frontier: Growth Empirics where Taxes Affect Growth.

The plan of our paper is as follows. Section 2 presents a methodology which decomposes the growth rate for OECD countries for the period 1967 to 1985 into movements along and movements towards the frontier. Section 3 takes the inter-temporal change in our index of X- inefficiency developed in Section2 and uses it as the dependent variable in an analysis of the role in growth of non-input country characteristics, especially the taxation regime. Finally, Section 4 provides a few concluding comments and indicates some avenues for further research.