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Political Institutions and Economic Growth
No full text7"Political Institutions and Economic Growth," joint wit
Endogenous Taxation: An Overlapping Generations Approach
No full textThe paper develops an overlapping generations framework of endogenous taxation. There are three types of heterogeneity among individuals: age, productivity, and bequest motives. The heterogeneity gives rise to a redistributive conflict and therefore to different preferences over fiscal policy. Linear taxes are levied on consumption expenditure, wage income and capital income. These tax rates and the provision of a public good become endogenous through a majority-voting rule. The dynamic politico-economic equilibrium is examined both in and outside the steady state. The focus is on the underlying characteristics of the economy that gives rise to a particular fiscal structure
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