Díaz, Iván Alejandro Durán; Hassan, Andrés Ramírez - In: Revista de Administración, Finanzas y Economía … 1 (2007) 1, pp. 22-44
In this paper is analyzed the macroeconomic effects associated with increases in the capital tax rate and labor tax rate under a Neoclassical model with elastic labor supply and positive externalities due to government's spending. It is found that these policies reduce the production, the...