This paper considers the relationship between tax competition and growth in an endogenous growth model where there are … input. Absent stochastic shocks, decentralized tax setting (two or more jurisdictions) maximizes the rate of growth, as the … constant returns to scale present with endogenous growth implies "extreme" tax competition. Stochastic shocks imply that …

This paper proposes a growth-oriented dual-income tax by combining an allowance for corporate equity with a broadly … defined flat tax on personal capital income. Revenue losses are compensated by an increase in the value added tax. The paper …. Tax rates are chosen to prevent income shifting from labor to capital income. The reform decisively strengthens investment …

This paper estimates the effects of tax changes on the U.K. economy. Identification is achieved by isolating the … 'exogenous' tax policy shocks in the post-war U.K. economy using a narrative strategy as in Romer and Romer (2010). The resulting … tax changes are shown to be unforecastable on the basis of past macroeconomic data. I find that a 1 per cent cut in taxes …

This paper studies the short-run macroeconomic effects of legislated tax changes in Germany using a vector … autoregression (VAR) approach. Identification of the tax shock follows the narrative approach recently proposed by Romer and Romer … monetary policy reaction following announcement of the tax policy. In response to a 1 percent increase in the tax-to-GDP ratio …

labour markets would amplify the benefits associated with globalisation. …