Milesi-Ferretti, Gian Maria; Roubini, Nouriel - C.E.P.R. Discussion Papers - 1996
This paper studies the effects of factor income taxation and of subsidies to human capital accumulation in models of … capital accumulation can offset the direct growth effects of labour taxation, making it akin to a consumption tax. The paper … then derives the normative implications of the analysis for the optimal taxation of factor incomes, showing that all tax …