In this paper it is analyzed whether capital depreciation allowances are good instruments for redistribution in the long run. In a simple two-class economy it is shown that in the short run and absent optimizing behaviour accelerated depreciation is good for growth and may stabilize investment...

It is obvious that the German economy exhibits a significant decline in economic growth during the last two decades. Although the German economy has still to overcome the burden of the reunification in 1990 it is shown that this burden might be only one reason of this decline. In this study we...

In an infinite-horizon endogenous growth model a capital income cum investment subsidy tax is considered to investigate if distribution of income towards the non-accumulated factor of production (labour) retards growth and if capital income taxes are bad instruments to finance investment...

Silvio Gesell argued that ‘rusting’ money is economically and socially beneficial;that claim has often been contended. In Part II of the paper I concentrate on thelong-run implications of his ideas. I show that introducing money depreciationin isolation may be economically non-beneficial in...

Silvio Gesell hypothesized that money depreciation is economically and sociallybeneficial, ideas that have often been contended. Here I analyze that in a Sidrauskimodel in which households additionally have a ‘love of wealth’-motive. In thefirst part of this work these features provide the...

This paper offers a supply-side explanation of the variation in long-run growth and inequality across countries. In the model education simultaneously affects growth and income inequality. More human capital may increase or decrease growth but also measured inequality. In contrast to some recent...