Michaelis, Jochen; Birk, Angela - HWWA Institut für Wirtschaftsforschung - 2004
This paper explores how revenue-neutral tax reforms impact employment and economic growth in a model of endogenous … growth and search frictions on the labor market. We analyze how savings and the incentive to create new jobs are affected by … observe an increase in both growth and, via the capitalization effect, employment. Most other tax reforms, however, imply a …