This paper examines the effects of taxation on long-run growthin a two-sector endogenous growth model with (i) physical … theeffects of taxation - including income taxation, capital incometaxation and labor income taxation - distinguishes between … oflabor supply, taxation of income may induce agents to spend moreor less time on leisure activities. In the case of …

differential income taxation. We start with the well-known result that risk-taking may increase when income tax rates increase and …, therefore, the incentive for hedging reduces. We demonstrate that pure hedging is differently affected by taxation than …