Lump-Sum Taxes in a R&D Model

Pelloni AlessandraWaldmann Robert J.Long Xin
CEIS Research Paper
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.
Number: 120
Volume: 6
Issue: 5
Date: Monday, July 14, 2008
Revision Date: Monday, July 14, 2008