welfare and growth are identified by estimating their effects on investment in both physical and human capital and overall … productivity. Basic human rights have indeed a positive effect on investment, but do not seem to contribute to productivity. Social … or emancipatory rights, in turn, are not conducive to investment in physical capital but do contribute to productivity …

demonstrates the neutrality properties of the reform with respect to investment, firm financial decisions and organizational choice …. Tax rates are chosen to prevent income shifting from labor to capital income. The reform decisively strengthens investment …