David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
This paper examines the effect of fiscal policy and provision of productive public goods on the dynamics of growth and inequality. A model is developed in which public infrastructure is both an engine of growth and a determinant of the distributions of wealth, income, and welfare. The design of government spending and taxation policies is a critical source of (i) the growth-inequality relationship, and (ii) the efficiency-equity trade-off, both in transition as well as the steady-state. For example, growth-enhancing government spending policies can generate sharp intertemporal trade-offs in the evolution of income inequality: inequality falls in the short run, but gradually increases over time to worsen in the long-run. The existence of an efficiency-equity trade-off depends on the taxation policy used to finance government spending. In this respect, the capital income tax serves as an effective tool of egalitarian redistribution. The redistributive effects of the consumption tax as an alternative to the more conventional labor income tax are also highlighted.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library||
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Edward J. McCaffery (2006). The Uneasy Case for Capital Taxation. Social Philosophy and Policy 23 (2):166-184.
Alfred L. McAlister (2010). Moral Disengagement and Tolerance for Health Care Inequality in Texas. Mind and Society 9 (1):25-29.
Warren J. Samuels (1993). The Growth of Government. Critical Review 7 (4):445-460.
Richard Vedder (2006). Taxes, Growth, Equity, and Welfare. Social Philosophy and Policy 23 (2):53-72.
James D. Gwartney & Robert A. Lawson (2006). The Impact of Tax Policy on Economic Growth, Income Distribution, and Allocation of Taxes. Social Philosophy and Policy 23 (2):28-52.
Oscar Javier Cárdenas Rodríguez (2009). Poverty Reduction Approaches in Mexico Since 1950: Public Spending for Social Programs and Economic Competitiveness Programs. [REVIEW] Journal of Business Ethics 88 (2):269 - 281.
Stephen G. Peitchinis (1990). Government Spending and the Budget Deficit. Journal of Business Ethics 9 (7):591 - 594.
Joel Slemrod (2006). The Consequences of Taxation. Social Philosophy and Policy 23 (2):73-87.
Added to index2009-01-28
Total downloads7 ( #192,321 of 1,099,821 )
Recent downloads (6 months)1 ( #303,541 of 1,099,821 )
How can I increase my downloads?