and investment. However, for growth, higher inequality tends to retard growth in poor countries and encourage growth in …

faster. Countries with higher human capital also have lower fertility rates and higher ratios of physical investment to GDP …. These results on growth, fertility, and investment are consistent with some recent theories of endogenous economic growth …, whereas public investment has little relation with growth. Average growth rates are positively related to political stability …

social rate of return on investment exceeds the private return, then tax policies that encourage investment can raise the … capital goods. Tax incentives for investment are not called for if the private rate of return on investment equals the social … be superior to lump-sum taxation. In particular, the incentives for investment and growth are too high if taxes are lump …