Optimal Taxation and Economic Growth: A Survey
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| Title | Optimal Taxation and Economic Growth: A Survey
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| Author | Jin Ge |
| Organization | School of Public Finance and Administration, Zhejiang University of Finance and Economics |
| Email | freebluesky2002@126.com |
| Key Words | Optimal Linear Taxation; Optimal Nonlinear Taxation; Public Expenditure; Economic Growth |
| Abstract | This paper tries to make clear the development of the three main strands of the vast literature on optimal taxation and economic growth since Chamley’s seminal work in 1986. It shows that the first strand, pioneered by Chamley (1986), studies the link between optimal linear taxation and economic growth on the premise of exogenous public expenditure while the second, starting with Barro (1990), explores such a link with endogenous public spending instead. It also shows that the GKT (2003) model initials the third strand, which extends Chamley’s linear tax schedules to non-linear ones but still takes public expenditure as given. Finally, the paper presents possible paths for future research. |
| Serial Number | WP434 |
| Time | 2013-02-21 |
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