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 …

The macroeconomic effects on growth, investment and private sector employment of different ways of rolling back the … cutting public spending on private goods induce an investment boom. Making the tax system less progressive by cutting tax … credits and the income tax rate induces an investment boom as well. The effects of endogenous growth, adjustment costs for …

equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … profit. Setting up a model that allows for profitable and loss-making affiliates of multinationals, we show that profit …-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In …

parental human capital; (2) intergenerational transfers are accomplished via investment in the education of the younger …