I propose to use tax incentives to attract foreign direct investments (FDI) to developing countries to promote growth, and explain what practical and conceptual changes in the tax systems of developing as well as developed countries (introducing a notion of inter-nation equity) should be made to...

This paper explains both the onset of the financial crisis in 1998 and the striking economic recovery afterwards in Russia and other Former Soviet Union (FSU) economies. Before the crisis banks do not lend to the real sector of the economy and firms use non-bank finance, including trade credits...

We provide the first theoretical analysis of the effects of alternate forms of taxation on economic growth in a dynamic model with multiple regions. The regions are heterogeneous but, in each region, consumers have constant relative risk aversion preferences, there is no growth in the stock of...

We provide the first theoretical analysis of the effects of alternate forms of taxation on economic growth in a dynamic model with multiple regions. The regions are heterogeneous but, in each region, consumers have constant relative risk aversion preferences, there is no growth in the stock of...

The paper compares the way economies with exogenous and endogenous innovation respond to capital income taxes. If innovation is exogenous, tax cuts increase saving. If innovation is endogenous, tax cuts increase innovation as well. Faster innovation raises capital productivity and calls forth...