A reduction in income tax rates generates substantial dynamic responses within the framework of the standard … neoclassical growth model. The short-run revenue loss after an income tax cut is partly - or, depending on parameter values, even … response of government revenue to tax cuts by a relevant amount. In our benchmark calibration, a reduction in the capital-income …

during the development process. In our model, per capita is more volatile in the middle-income economies than in both low and … high-income economies. We show that, if the model economy is in the early or in the mature stages of development there is a …