On the Effects of Redistribution on Growth and Entrepreneurial Risk–Taking
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Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2005. (Working paper series in economics; No. 6).
Research output: Working paper › Working papers
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RIS
TY - UNPB
T1 - On the Effects of Redistribution on Growth and Entrepreneurial Risk–Taking
AU - Clemens, Christiane
AU - Heinemann, Maik
N1 - Literaturverz. S. 19 - 22
PY - 2005/3/17
Y1 - 2005/3/17
N2 - This paper investigates the redistributive effects of taxation on occupa-tional choice and growth. We discuss a two–sector economy in the spiritof Romer (1990). Agents engage in one of two alternative occupations:either self–employment in an intermediate goods sector characterized bymonopolistic competition, or employment as an ordinary worker in thissector. Entrepreneurial profits are stochastic. The occupational choice un-der risk endogenizes the number of firms in the intermediate goods indus-try. While the presence of entrepreneurial risk results in a suboptimallylow number of firms and depresses growth, non–linear tax schemes arepartly capable of compensating the negative by effects by ex post provid-ing a social insurance.
AB - This paper investigates the redistributive effects of taxation on occupa-tional choice and growth. We discuss a two–sector economy in the spiritof Romer (1990). Agents engage in one of two alternative occupations:either self–employment in an intermediate goods sector characterized bymonopolistic competition, or employment as an ordinary worker in thissector. Entrepreneurial profits are stochastic. The occupational choice un-der risk endogenizes the number of firms in the intermediate goods indus-try. While the presence of entrepreneurial risk results in a suboptimallylow number of firms and depresses growth, non–linear tax schemes arepartly capable of compensating the negative by effects by ex post provid-ing a social insurance.
KW - Economics
KW - OLG
KW - Endogenous growth
KW - entrepreneurship
KW - occupational choice
KW - redistributive taxation
M3 - Working papers
T3 - Working paper series in economics
BT - On the Effects of Redistribution on Growth and Entrepreneurial Risk–Taking
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -