On the ineffectiveness of tax policy in altering long-run growth: Harberger's superneutrality conjecture
Article Abstract:
Harberger's superneutrality conjecture proved to be useful in explaining the effects of tax policy on investment and long-term growth. Analysis showed that growth increases whenever taxes are lessened. The rate of investment, meanwhile, increases whenever there is a reduction in income tax. An increase in consumption tax also contributes to the improvement in investment. Reforms on labor income taxes bring more significant impact than changes in consumption and capital income taxes.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1997
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How responsive is business capital formation to its user cost? An exploration with micro data
Article Abstract:
Evaluation of tax reform, monetary policy and deficit deduction is greatly influenced by how the business capital formation responds to its user cost. However, there is no clear evidence for a substantial user cost elasticity despite the substantial effects reported by firm-level data. The user cost elasticity was examined through a micro dataset which consists of more than 26,000 observations.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1999
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