Capital Taxation and Economic Performance

Publication: Working/Discussion PaperWU Working Paper

Abstract

A new technology is a bold new combination of production factors that potentially yields a higher level of total factor productivity. The optimal combination of input factors is unknown when an innovation is pursued. A larger targeted innovation may require a greater change in the optimal combination of production factors employed and increases volatility alongside with economic growth. We show that economic policy can interfere in this relationship with by adjusting source based capital income taxes.
Original languageEnglish
Place of PublicationVienna
PublisherSFB International Tax Coordination, WU Vienna University of Economics and Business
Publication statusPublished - 2007

Publication series

NameDiscussion Papers SFB International Tax Coordination
No.24

WU Working Paper Series

  • Discussion Papers SFB International Tax Coordination

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