This paper analyses the welfare effects of investment deductibility in a contest of endogenous growth generated by learning-by-doing and knowledge spillovers. We present a model where a set of revenue neutral fiscal policies, each characterized by different degrees of investment deductibility...

This paper analyses the welfare effects of flat tax in a context of endogenous growth generated by learning-by-doing and knowledge spillovers. We present a model where a set of revenue neutral fiscal policies, each characterised by different degrees of investment deductibility and different...