Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Growth Effects of Income and Consumption Taxes

Gian Maria Milesi-Ferretti and Nouriel Roubini
Journal of Money, Credit and Banking
Vol. 30, No. 4 (Nov., 1998), pp. 721-744
DOI: 10.2307/2601126
Stable URL: http://www.jstor.org/stable/2601126
Page Count: 24
  • More info
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Growth Effects of Income and Consumption Taxes
Preview not available

Abstract

The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital. The different channels through which these taxes affect economic growth are discussed. It is shown that the effects of taxation on growth depend crucially on whether the sector producing human capital is a market sector, on the technology for human capital accumulation, and on the specification of the leisure activity. In general, the taxation of factor incomes (human and physical capital) is growth reducing, while the effects of a consumption tax depend on the specification of leisure. The paper also derives implications for the growth-maximizing choice of tax instruments.

Page Thumbnails

  • Thumbnail: Page 
[721]
    [721]
  • Thumbnail: Page 
722
    722
  • Thumbnail: Page 
723
    723
  • Thumbnail: Page 
724
    724
  • Thumbnail: Page 
725
    725
  • Thumbnail: Page 
726
    726
  • Thumbnail: Page 
727
    727
  • Thumbnail: Page 
728
    728
  • Thumbnail: Page 
729
    729
  • Thumbnail: Page 
730
    730
  • Thumbnail: Page 
731
    731
  • Thumbnail: Page 
732
    732
  • Thumbnail: Page 
733
    733
  • Thumbnail: Page 
734
    734
  • Thumbnail: Page 
735
    735
  • Thumbnail: Page 
736
    736
  • Thumbnail: Page 
737
    737
  • Thumbnail: Page 
738
    738
  • Thumbnail: Page 
739
    739
  • Thumbnail: Page 
740
    740
  • Thumbnail: Page 
741
    741
  • Thumbnail: Page 
742
    742
  • Thumbnail: Page 
743
    743
  • Thumbnail: Page 
744
    744