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Lump-Sum Taxes in a R&D Model

CEIS Working Paper No. 120

16 Pages Posted: 8 Apr 2008

See all articles by Alessandra Pelloni

Alessandra Pelloni

University of Rome Tor Vergata, Department of Economics and Finance, Students

Robert Waldmann

Universita di Roma Tor Vergata; National Bureau of Economic Research (NBER)

Xin Long

Sapienza University of Rome

Date Written: March 2008

Abstract

Is it possible to increase growth and welfare by raising taxes and disposing of the tax revenues? We show this may indeed be the case in a simple model with endogenous technical change, represented by an increase in the variety of intermediate goods.

Keywords: Endogenous growth, welfare, lump-sum tax, R&D

JEL Classification: H21, 041

Suggested Citation

Pelloni, Alessandra and Waldmann, Robert and Long, Xin, Lump-Sum Taxes in a R&D Model (March 2008). CEIS Working Paper No. 120, Available at SSRN: https://ssrn.com/abstract=1115872 or http://dx.doi.org/10.2139/ssrn.1115872

Alessandra Pelloni (Contact Author)

University of Rome Tor Vergata, Department of Economics and Finance, Students ( email )

Rome
Italy

Robert Waldmann

Universita di Roma Tor Vergata ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Xin Long

Sapienza University of Rome ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

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