Recent tax reforms in the OECD area have aimed at reducing the progressivity of the labour income taxation. The present analysis seeks to evaluate the effects of such reforms both theoretically and empirically for the case of Denmark. The theoretical general equilibrium model contains a dual...

The paper develops a model of endogenous economic growth, where sustainable growth is driven by private capital accumulation and productive government spending on education and pollution abatement. The economy is distorted by pollution externalities in production and consumption; by taxes and...