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I study the growth and welfare e⁄ects of a business tax cut in two economies that di⁄er with respect to rms governance. In one the founders of the rms delegate management; in the other they do not. Growth is driven by the arrival of new rms, and by the accumulation of intangibles. Delegation...
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This paper develops an overlapping-generations model characterized by endogenous growth, unemployment, and pollution … unemployment benefits, and considers a replacement-ratio-neutral reform in which the environmental tax is devoted to cutting the … employees' rate of contribution to unemployment insurance. Under this reform, (i) the growth rate is increased, the unemployment …
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This paper considers the impact of changes in the rate of corporation tax in Ireland affecting the services sector. A model is estimated that relates services exports and output to world activity, competitiveness and the rate of corporation tax. This model indicates that a reduction in the rate...
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