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Author Asea, Patrick K.

Title Do Taxes Matter for Long-Run Growth? : Harberger's Superneutrality Conjecture /cAsea, Patrick K
Published Washington, D.C. : International Monetary Fund, 1995
Online access available from:
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Description 1 online resource (42 pages)
Series IMF Working Papers, 2227-8885 ; Working Paper No. 95/79
IMF Working Papers ; Working Paper no. 95/79
Summary Harberger?s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects investment and growth, in practice growth effects of taxation are negligible. This paper provides evidence in support of this view by testing the predictions of endogenous growth models driven by human capital accumulation. The theoretical analysis highlights implications of different taxes for growth and investment in these models. The empirical work is based on cross-country regressions and numerical simulations, using a new methodology for estimating aggregate effective tax rates. Results show significant investment effects from income and consumption taxes that are consistent with small growth effects. The results are robust to the introduction of other growth determinants
Notes Available in PDF, ePUB, and Mobi formats on the Internet
Form Electronic book
Author Asea, Patrick K.
Mendoza, Enrique G., 1963-
Milesi-Ferretti, Gian Maria.
International Monetary Fund.
ISBN 1455268550