Redistributive Tax and Growth in a Model with Discrete Occupation choice

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Show simple item record Bandyopadhyay, Debasis en Basu, Parantap en 2006-11-30T20:53:43Z en 2006-11-30T20:53:43Z en 1999 en
dc.identifier.citation Department of Economics Working Paper Series 192 en
dc.identifier.uri en
dc.description.abstract An optimal redistributive tax-subsidy formula is derived for a growth model where inequality is endogenously driven by an adult's choice of occupation between work and management. The human capital or knowledge is the only engine of growth and there is externality associated with human capital B la Lucas (1988) and Romer (1990). How much available knowledge would be exploited in the economy depends on the proportion of innovators who are called managers in our model. A redistributive tax reform directly impacts this proportion of managers by influencing the occupational choice. A growth maximizing redistributive scheme involves an educational subsidy to the innovators financed by taxing workers. Such an optimal educational subsidy is, however, path dependent. An economy with excessively high proportion of managers warrants lesser educational subsidy. en
dc.format.extent application/pdf en
dc.format.mimetype text en
dc.language.iso en en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartofseries Department of Economics Working Paper Series (1997-2006) en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri en
dc.subject.other Economics en
dc.title Redistributive Tax and Growth in a Model with Discrete Occupation choice en
dc.type Working Paper en
dc.rights.holder Copyright: the author en Economics en

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