In this paper we investigate the effect of a tax on land rent on the growth rate of capital in a growing economy with overlapping generations. A tax on land rent has a potential to increase the growth rate of capital. If the model is extended to allow the tax revenue to be refunded to individuals, a tax on land rent may deter growth to the extent that the tax revenue is transferred to the older generation.
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Univ London Royal Holloway & Bedford New Coll, Dept Econ, Egham TW20 0EX, Surrey, EnglandUniv London Royal Holloway & Bedford New Coll, Dept Econ, Egham TW20 0EX, Surrey, England
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Univ Southern Calif, Marshall Sch Business, Dept Finance & Business Econ, Los Angeles, CA 90089 USAUniv Southern Calif, Marshall Sch Business, Dept Finance & Business Econ, Los Angeles, CA 90089 USA
Imrohoroglu, Aye
Imrohoroglu, Selahattin
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Univ Southern Calif, Marshall Sch Business, Dept Finance & Business Econ, Los Angeles, CA 90089 USAUniv Southern Calif, Marshall Sch Business, Dept Finance & Business Econ, Los Angeles, CA 90089 USA
Imrohoroglu, Selahattin
Joines, Douglas H.
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Univ Southern Calif, Marshall Sch Business, Dept Finance & Business Econ, Los Angeles, CA 90089 USAUniv Southern Calif, Marshall Sch Business, Dept Finance & Business Econ, Los Angeles, CA 90089 USA
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Graduate School of Economics, Osaka University, 1-7 Machikaneyama, Toyonaka, OsakaGraduate School of Economics, Osaka University, 1-7 Machikaneyama, Toyonaka, Osaka