On the ineffectiveness of tax policy in altering long-run growth: Harberger's superneutrality conjecture

Journal of Public Economics

Volumn 66, Issue 1, 1997, Pages 99-126

  Mendoza, Enrique G ^a   Milesi Ferretti, Gian Maria ^b   Asea, Patrick ^c  

^a FEDERAL RESERVE BOARD   (United States)

^b INTERNATIONAL MONETARY FUND   (United States)

^c UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

Endogenous growth; Private investment; Tax rate estimates; Tax structure

Indexed keywords

EID: 0031256589     PISSN: 00472727     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0047-2727(97)00011-X     Document Type: Article

References (41)

1. Barro, R.J., 1991. Economic Growth in a Cross-Section of Countries,. Quarterly Journal of Economics 104, 407-444.
2. Barro, R.J., Lee J.-W., 1994. Sources of Economic Growth, Carnegie-Rochester Conference Series on Public Policy 40, June, 1-46.
3. Barro, R.J., Sahasakul, C., 1986. Average marginal tax rates from social security and the individual Income Tax, Journal of Business 59, no. 4, University of Chicago.
4. Barro, R.J., Sala-i-Martin X., 1995. Economic Growth, McGraw-Hill Inc., New York, NY.
5. Bosworth, B., 1993. Savings and Investment in a Global Economy, Brookings Institution, Washington B.C.
6. Chari, V.V., Kehoe P.J., McGrattan E.R., 1996. The Poverty of Nations: a Quantitative Exploration, Federal reserve Bank of Minneapolis Staff Report no. 204, January.
7. DeLong, J.B., Summers, L.H., 1991. Equipment Investment and Economic Growth,. Quarterly Journal of Economics 106, 445-502.
8. Devereux, M.B., Love, D.R., 1994. The Effects of Taxation in a Two-Sector Model of Endogenous Growth,. Canadian Journal of Economics 27, 509-536.
9. Devereux, M.B., Love, D.R., 1995. The Dynamic Effects of Government Spending Policies in a Two-Sector Endogenous Growth Model. Journal of Money, Credit and Banking 27, 232-256.
10. Easterly, W., Rebelo, S., 1993. Marginal Income Tax Rates and Economic Growth in Developing Countries,. European Economic Review 37, 409-417.
11. Easterly, W., Rebelo, S., 1993. Fiscal Policy and Economic Growth: an Empirical Investigation,. Journal of Monetary Economics 32, 417-458.
12. Engen, E.M., Skinner J., 1992. Fiscal Policy and Economic Growth, NBER Working Paper No. 4223, National Bureau of Economic Research.
13. Fischer, S., 1993. The Role of Macroeconomic Factors in Growth,. Journal of Monetary Economics 32 (3), 485-512.
14. Frenkel, J., Razin A., Sadka E., 1991. International Taxation in an Integrated World, Cambridge, Mass: MIT Press.
15. Harberger, A.C., 1964. The Measurement of Waste,. American Economic Review LIV, 58-76.
16. Harberger, A.C., 1964b. Taxation, Resource Allocation and Welfare, in The Role of Direct and Indirect Taxes in the Federal Revenue System, NBER and the Brookings Institution eds., Princeton Univ. Press, NJ.
17. Hopenhayn, H.A., M.E. Muniagurria, 1993. Policy Variability and Economic Growth, Economics Working Paper 30, Universitat Pompeu Fabra, Barcelona, February 1993.
18. King, R.G., Plosser, C.I., Rebelo, S.T., 1988. Production, Growth and Business Cycles: I. The Basic Neoclassical Model. Journal of Monetary Economics 21, 195-232.
19. King, R.G., Rebelo, S., 1990. Public Policy and Economics Growth: Developing Neoclassical Implications. Journal of Political Economy 98 (5, part 2), S126-S150.
20. Koester, R., Kormendi, R., 1989. Taxation aggregate activity and economic growth: cross-country evidence on some supply-side hypotheses. Economic Inquiry 27, 367-386.
21. Levhari, D., Srinivasan, T.N., 1969. Optimal Savings Under Uncertainty, Review of Economic Studies, 153-163.
22. Levine, R., Renelt, D., 1992. A Sensitivity Analysis of Cross-Country Growth Regressions,. American Economic Review 82, 942-963.
23. Lucas, Jr. R.E., 1990. Supply-Side Economics: an Analytical Review,. Oxford Economic Papers 42, 293-316.
24. Mankiw, N.G., Romer, D., Weil, D.N., 1992. A Contribution to the Empirics of Economic Growth,. Quarterly Journal of Economics 107, 407-437.
25. Mendoza, E.G., 1996. Terms-of-Trade Uncertainty and Economic Growth: Are Risk Indicators Significant in Growth Regressions, forthcoming, Journal of Development Economics.
26. Mendoza, E.G., Milesi-Ferretti G.M., Asea P., 1996. On the Ineffectiveness of Tax Policy in Altering Long-Run Growth: Harberger's Superneutrality Conjecture, CEPR Discussion Paper 1378, April.
27. Mendoza, E.G., Razin, A., Tesar, L.L., 1994. Effective Tax Rates in Macroeconomics: Cross-Country Estimates of Tax Rates on Factor Incomes and Consumption,. Journal of Monetary Economics. 34, 297-323.
28. Mendoza, E.G., Tesar L.L., 1998. Supply-side economics in a global economy, forthcoming. American Economic Review.
29. Milesi-Ferretti, G.M., Roubini N., 1995. Growth Effects of Income and Consumption Taxes: Positive and Normative Analysis, NBER Working Paper no. 5317, October.
30. Milesi-Ferretti, G.M., Roubini N., 1996. On the Taxation of Human and Physical Capital in Endogenous Growth Models, mimeo, CEPR Discussion Paper No. 1477, November.
31. Obstfeld, M., 1994. Risk-Taking, Global Diversification, and Growth,. American Economic Review 84, 1310-1329.
32. Organization for Economic Cooperation and Development, 1990. Revenue Statistics of OECD Member Countries 1965-1989, magnetic tape, Organization for Economic Cooperation and Development, Paris.
33. Organization for Economic Cooperation and Development, 1991a. National Accounts, Detailed Tables: Volume II, magnetic tape, OECD, Paris.
34. Organization for Economic Cooperation and Development, 1991b. Taxing Profits in a Global Economy: Domestic and International Issues, OECD, Paris.
35. Parente, S.L., Prescott E.C., 1994. Barriers to Technology Adoption and Development, Journal of Political Economy 102, April, 298-321.
36. Pecorino, P., 1993. Tax Structure and Growth in a Model with Human Capital. Journal of Public Economics 52, 251-271.
37. Phelps, E.S., 1962. The Accumulation of Risky Capital: A Sequential Utility Analysis,. Econometrica 30 (4), 729-743.
38. Plosser, C.I., 1992. The Search for Growth, in Policies for Long-Run Economic Growth, Symposium Sponsored by the Federal Reserve Bank of Kansas City, Kansas City, MO.
39. Ramey, G., Ramey, V.M., 1995. Cross-Country Evidence on the Link Between Volatility and Growth,. American Economic Review 85 (5), 1138-1151.
40. Razin, A., Sadka E., 1993. The Economy of Modern Israel: Malaise and Promise, The University of Chicago Press, Chicago, IL.
41. Stokey, N.L., Rebelo, S., 1995. Growth Effects of Flat-Rate Taxes,. Journal of Political Economy 103, 519-550.