Optimal taxation in an endogenous growth model with variable population and public expenditure

Renström, T.I.; Spataro, L.

Abstract

In this paper we analyse second-best optimal taxation in an endogenous-growth model driven by public expenditure, in presence of endogenous fertility and labour supply. Normative analysis shows positive taxes on the number of children, which are necessary to correct for congestion in the publicly provided input (such as education and healthcare), negative public debt. Results on capital and labour income taxation depend on whether the public input is optimally provided.

Citation

Renström, T., & Spataro, L. (2021). Optimal taxation in an endogenous growth model with variable population and public expenditure. Journal of Public Economic Theory, 23(4), 639-659. https://doi.org/10.1111/jpet.12515

• Journal Article Type: Article
• Acceptance Date: Apr 17, 2021
• Online Publication Date: May 14, 2021
• Publication Date: Jul 7, 2021
• Deposit Date: Apr 26, 2021
• Publicly Available Date: Oct 7, 2021
• Journal: Journal of Public Economic Theory
• Print ISSN: 1097-3923
• Electronic ISSN: 1467-9779
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 23
• Issue: 4
• Pages: 639-659
• DOI: https://doi.org/10.1111/jpet.12515
• Public URL: https://durham-repository.worktribe.com/output/1276851