RT Report
T1 Taxing or subsidizing factors' rents in a simple endogenous growth model with public capital
A1 Marrero, Gustavo A.
A1 Novales Cinca, Alfonso Santiago
AB This paper tackles the fundamental issue in public finance of wether taxing or subsidizing factor rents. In a one sector endogenous growth model with private and public capital, similar to that in Barro (1990), we find that raising taxes on factors’ income as part of an optimalfiscal policy is a more pervasive result than it seems. The interaction of technological and fiscal externalities is central for this result. For instance, high enough levels of wasteful expenditures to output ratio could make positive income taxes enhance welfare. This ratio would need to be smaller, the lower the spillover externality and/or the larger the elasticities of private and public capital in the private production function.
PB Instituto Complutense de Análisis Económico.Universidad Complutense de Madrid
YR 2003
FD 2003
LK https://hdl.handle.net/20.500.14352/64522
UL https://hdl.handle.net/20.500.14352/64522
LA eng
DS Docta Complutense
RD 5 abr 2025