A number of recent papers have investigated the growth effects of tax reforms in the context of neoclassical growth models where growth is due to human capital accumulation. Stokey and Rebelo (1995) show that the predicted growth effects disagree to a striking extent and are highly sensitive to...

A large empirical literature investigates the link between "openness" and growth. Cross-country observations suggest that (i) "openness" enhances growth by increasing a country's rate of investment, and (ii) variables related to equipment investment are robustly and strongly correlated with...

A number of recent studies suggest that flat rate taxes may have important effects on long-run growth in the neoclassical growth model with human capital. In contrast to the traditional human capital literature, these studies assume that agents are infinitely lived and face constant returns in...

A large empirical literature investigates the link between "openness" and growth. Cross-country observations suggest that (i) "openness" enhances growth by increasing a country's rate of investment, and (ii) variables related to equipment investment are robustly and strongly correlated with...

A number of recent studies suggest that flat rate taxes may have important effects on long-run growth in the neoclassical growth model with human capital. In contrast to the traditional human capital literature, these studies assume that agents are infinitely lived and face constant returns in...