TY  - JOUR
AU  - Milesi-Ferrett,Gian Maria
AU  - Roubini,Nouriel
TI  - Growth Effects of Income and Consumption Taxes: Positive and Normative  Analysis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5317
PY  - 1995
Y2  - October 1995
UR  - http://www.nber.org/papers/w5317
L1  - http://www.nber.org/papers/w5317.pdf
N1  - Author contact info:
Gian Maria Milesi Ferretti
International Monetary Fund
Western Hemisphere Department, HQ1-10-120
700 19th Street, N.W.
Washington, DC 20431
Tel: 202 623-7441
Fax: 202 589-7441
E-Mail: gmilesiferretti@imf.org

Nouriel Roubini
Department of Economics, KMC 7-83
Stern School of Business, New York University
44 West 4th Street
New York, NY  10012
Tel: 212/998-0886
Fax: 212/995-4218
E-Mail: nroubini@stern.nyu.edu
AB  - The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital.  The different channels through which these taxes affect economic growth are discussed, and it is shown that in general the taxation of factor incomes (human and physical capital) is growth-reducing.  The effects of consumption taxation on growth depend crucially on the elasticity of labor supply, and therefore on the specification of the leisure activity.  The paper also derives implications for the optimal intertemporal choice of tax instruments.
ER  -