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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.

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Metadaten
Verfasserangaben:Christiane Clemens, Maik Heinemann
URN:urn:nbn:de:gbv:luen4-opus-3106
URL: https://pub-data.leuphana.de/frontdoor/index/index/docId/359
Dokumentart:Bericht
Sprache:Deutsch
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