Technological Change and the Composition of Taxes and Public Expenditures
Starts: Wednesday 6 March 2013
1:00 pm
Ends: Wednesday 6 March 2013 2:00 pm
Ends: Wednesday 6 March 2013 2:00 pm
| Event type | Seminar |
| Location | MJ117 |
Presented by: Pedro Gomes (Universidad Carlos III)
By Davide Debortoli and Pedro Gomes
The paper analyzes the determinants of four fiscal trends, observed in many developed countries over the past 40 years: a decline in the corporate tax rate and public investment offset by an increase in the labour income tax and government consumption. Within a simple neoclassical growth model with a public sector, we illustrate the interdependency between the two government problems of how to spread the tax burden and how to allocate the spending. We find that investment-specific technological changes account for one third of the change in the composition of taxes and two thirds of the change of the composition on spending.
Contact details
Name: Dr. Russ Moro
Email: Russ.Moro@brunel.ac.uk
