Abstract

http://ssrn.com/abstract=2164597
 
 

Citations (2)



 


 



Non-Linear Effects of Taxation on Growth


Nir Jaimovich


Duke University

Sergio T. Rebelo


Northwestern University - Kellogg School of Management; Centre for Economic Policy Research (CEPR); University of Rochester - Department of Economics; National Bureau of Economic Research (NBER)

October 2012

NBER Working Paper No. w18473

Abstract:     
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, negative impact on growth performance. We argue that this non-linearity is consistent with the empirical evidence on the effect of taxation and other disincentives to investment and innovation on economic growth.

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Number of Pages in PDF File: 50

working papers series


Date posted: October 20, 2012  

Suggested Citation

Jaimovich, Nir and Rebelo, Sergio T., Non-Linear Effects of Taxation on Growth (October 2012). NBER Working Paper No. w18473. Available at SSRN: http://ssrn.com/abstract=2164597

Contact Information

Nir Jaimovich (Contact Author)
Duke University ( email )
100 Fuqua Drive
Durham, NC 27708-0204
United States
Sergio Tavares Rebelo
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Leverone Hall
Evanston, IL 60208
United States
847-467-2329 (Phone)
847-491-5719 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
University of Rochester - Department of Economics ( email )
Harkness Hall
Rochester, NY 14627
United States
585-275-5252 (Phone)
585-256-2309 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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