Economics, Econometrics and Finance
8 years ago

Nondistortionary taxation has no direct effect on economic growth, study finds.

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Economics bulletin
Econometric Analysis of Fiscal Policy Budget Constraints in Endogenous Growth Models
Yoshihiko Tsukuda, Tatsuyoshi Miyakoshi

Paper Summary

The article looks at how different types of taxes and government spending affect economic growth. It uses a method called econometric analysis to study this. The researchers found that certain taxes and spending have no direct impact on growth, supporting previous predictions.

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