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Year: 2005 Publisher: Cambridge, Mass. NBER
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Year: 1992 Publisher: London Centre for economic policy research
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Year: 1997 Publisher: London Centre For Economic Policy Research. Discussion Paper Nr. 1692 - International Macroeconomics
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Year: 2005 Publisher: London Centre For Economic Policy Research, International Macroeconomics. Discussion Paper Nr.5384. December 2005
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Year: 2024 Publisher: National Bureau of Economic Research
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Year: 1992 Publisher: Cambridge, Mass. National Bureau of Economic Research
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Year: 1997 Publisher: Cambridge, Mass. National Bureau of Economic Research
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Year: 1993 Publisher: Cambridge, Mass. National Bureau of Economic Research
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Year: 2012 Publisher: Cambridge, Mass. National Bureau of Economic Research
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We study a model in which the effects of taxation on growth are highly non-linear. Marginal increases in tax rates have a small growth impact when tax rates are low or moderate. When tax rates are high, further tax hikes have a large, negative impact on growth performance. We argue that this non-linearity is consistent with the empirical evidence on the effect of taxation and other disincentives to investment and innovation on economic growth.