On the Effects of Redistribution on Growth and Entrepreneurial Risk–Taking
- This paper investigates the redistributive effects of taxation on occupational choice and growth. We discuss a twoñsector economy in the spirit of Romer (1990). Agents engage in one of two alternative occupations: either selfñemployment in an intermediate goods sector characterized by monopolistic competition, or employment as an ordinary worker in this sector. Entrepreneurial pro_ts are stochastic. The occupational choice under risk endogenizes the number of _rms in the intermediate goods industry. While the presence of entrepreneurial risk results in a suboptimally low number of _rms and depresses growth, nonñlinear tax schemes are partly capable of compensating the negative by effects by ex post providing a social insurance.
Verfasserangaben: | Christiane Clemens, Maik Heinemann |
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URN: | urn:nbn:de:gbv:luen4-opus-3106 |
URL: | https://pub-data.leuphana.de/frontdoor/index/index/docId/359 |
Schriftenreihe (Bandnummer): | University of Lüneburg Working paper series in economics (6) |
Dokumentart: | Research Paper |
Sprache: | Englisch |
Erscheinungsjahr: | 2005 |
Datum der Veröffentlichung (online): | 06.07.2005 |
Datum der Freischaltung: | 06.07.2005 |
Freies Schlagwort / Tag: | OLG; endogenous growth; entrepreneurship; occupational choice; redistributive taxation |
GND-Schlagwort: | Wachstumstheorie / Endogenes Wirtschaftswachstum; Oberlandesgericht; Steuer; Unternehmer |
Fakultät / Forschungszentrum: | Universität / Frühere Fachbereiche |
DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |