Lump-Sum Taxes in a R&D Model
16 Pages Posted: 8 Apr 2008
Date Written: March 2008
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: Suggested Citation