Quantifying Optimal Growth Policy

Konferenzbeitrag

This paper develops a comprehensive endogenous growth framework to derive the optimal growth policy. The analysis is novel in that we capture important elements of the tax-transfer system and fully take into account transitional dynamics in our numerical analysis. US firms can currently about fully deduct their R&D and capital costs for calculating taxable corporate income. Our analysis suggests that the status quo policy leads to severe underinvestment in both R&D and physical capital. We find that firms should be allowed to deduct between 2- 2.5 times their R&D costs and about 1.5-1.7 times their capital costs from sales revenue. Implementing the optimal policy mix is likely to entail huge welfare gains.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Technology and Growth ; No. B1-V3

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Taxation, Subsidies, and Revenue: General ; Economic Growth and Aggregate Productivity: General
• Thema: Economic growth ; Endogenous technical change ; Optimal growth policy ; Tax-transfer system ; Transitional dynamics

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Grossmann, Volker ; Steger, Thomas M. ; Trimborn, Timo
• Ereignis: Veröffentlichung
• (wer): Verein für Socialpolitik
• (wo): Frankfurt a. M.
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/37203
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ