This paper develops a comprehensive endogenous growth framework to determinethe optimal mix of growth policies. The analysis is novel in that we captureimportant elements of the tax-transfer system and fully take into account transitionaldynamics in our numerical analysis. Currently, for...

We set up a neoclassical growth model extended by a corporate sector, aninvestment and finance decision of firms, and a set of taxes on capital income. We provideanalytical dynamic scoring of taxes on corporate income, dividends, capital gains, otherprivate capital income, and depreciation...

Previous research on optimal R&D subsidies has focussed on the long run.This paper characterizes the optimal time path of R&D subsidization in a semi-endogenous growth model, by exploiting a recently developed numerical method.Starting from the steady state under current R&D subsidization in the...

Several countries have recently abolished or significantly reduced their taxes on bequests.Bequest taxes, on the other hand, were among the first to be introduced when modernsystems of taxation were developed at the end of the nineteenth century. We propose anexplanation for these facts which is...

This paper deals with endogenous determination of effort as a source of productivity growth.

In an inuential article Tornell and Lane (1999) considered an economy populatedby multiple powerful groups in which property rights in the formal sectorof production are not protected. They obtained conditions under which thegroups appropriate output from the formal sector in order to invest it...

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions of entrepreneurs...

Entrepreneurial activity is generally assumed to be an important aspect of the organization of industries most conducive to innovative activity and unrestrained competition. This paper investigates whether total entrepreneurial activity influences GDP growth for a sample of 36 countries. We test...