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Quantifying Optimal Growth Policy
Grossmann, Volker - 2010
The optimal mix of growth policies is determined within a comprehensive endogenous growth model. The analysis captures important elements of the tax-transfer system and accounts for transitional dynamics. Currently, for calculating corporate taxable income US firms are allowed to deduct...
Persistent link: https://www.econbiz.de/10013142140
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Optimal Taxation and Constrained Inefficiency in an Infinite-Horizon Economy with Incomplete Markets
Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - 2021
We study the dynamic Ramsey problem of finding optimal public debt and linear taxes on capital and labor income within a tractable infinite horizon model with incomplete markets. With zero public expenditure and debt, it is optimal to tax the risky labor income and subsidize capital, while a...
Persistent link: https://www.econbiz.de/10013315974
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Identification and Estimation of the Environmental Kuznets Curve : Pairwise Differencing to Deal with Nonlinearity and Nonstationarity
Sen, Suphi - 2016
We propose an estimation strategy that accounts for two major problems raised in the empirical literature testing for the prevalence of the inverted U-shaped relation between environmental degradation and economic activity, namely the Environmental Kuznets Curve (EKC) hypothesis. First, we use...
Persistent link: https://www.econbiz.de/10012993697
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Cross-Country Income Differences and Technology Diffusion in a Competitive World
Irmen, Andreas - 2012
This paper develops a new open-economy endogenous growth model where technology diffusion allows for a stable and non-degenerate world income distribution. In accordance with the empirical literature, I find that country characteristics such as the social infrastructure, the degree of openness,...
Persistent link: https://www.econbiz.de/10012754962
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Social Security Systems, Human Capital, and Growth in a Small Open Economy
Kaganovich, Michael - 2008
We consider a small open economy in which the level of public education funding is determined by popular vote. We show that growth can be enhanced by the introduction of pay-as-you-go pensions even if the growth rate of aggregate wages falls short of the interest rate. The reason is that the...
Persistent link: https://www.econbiz.de/10012768260
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Growth and Welfare Under Endogenous Lifetime
Schneider, Maik T. - 2017
We study the role of endogenous healthcare choices by households to extend their expected lifetimes on economic growth and welfare in a decentralized overlapping generations economy with the realistic feature that households' savings are held in annuities. We characterize healthcare spending in...
Persistent link: https://www.econbiz.de/10012960113
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Factor Income Distribution and Endogenous Economic Growth - When Piketty Meets Romer
Irmen, Andreas - 2017
We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …
Persistent link: https://www.econbiz.de/10012965706
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Migration, Congestion and Growth
Azarnert, Leonid V. - 2017
This article analyzes the effect of migration from a less advanced economy to a more advanced economy on economic growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies are incorporated. The model shows that out-migration...
Persistent link: https://www.econbiz.de/10012953488
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Endogenous Growth, The Distribution of Wealth, and Optimal Policy Under Incomplete Markets and Idiosyncratic Risk
Clemens, Christiane - 2012
This paper combines the standard incomplete markets model of uninsurable idiosyncratic risks and borrowing constraints with the Arrow/Romer approach to endogenous growth to analyze the interaction of risk, growth, and inequality, the latter also endogenously determined in equilibrium. We derive...
Persistent link: https://www.econbiz.de/10013105141
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Growth Effects of Spatial Redistribution Policies
Arcalean, Calin - 2012
Regional income disparities have increased in many European countries recently, even as national and supra-national policy instruments were created to correct them. To explain these evolutions, we develop a two-region, two-sector model with migration and public investment in infrastructure and...
Persistent link: https://www.econbiz.de/10013110806