We study a model in which the effects of taxation on growth are highly non-linear. Marginal increases in tax rates have … a small growth impact when tax rates are low or moderate. When tax rates are high, further tax hikes have a large …

We investigate the conditions under which tax revenues can enhance economic growth. Using a newly constructed dataset … consisting of 135 economies and spanning the period 1990-2019, we study how changes in tax revenues impact economic growth using … a panel vector autoregression (PVAR) model. Tax revenues have a persistent positive impact on growth, and the …

We propose a model consistent with two observations. First, the tax rates adopted by different countries are generally … their growth performance. In our model, the effects of taxation on growth are highly non-linear. Low or moderate tax rates … have a very small impact on long-run growth rates. But as tax rates rise, their negative impact on growth rises …