Many theoretical models show that redistribution causes low growth or capital outflows even though empirically … redistribution and growth are often found to be positively associated across countries. This paper argues that tax competition and … the danger of capital outflows leads optimizing governments to pursue high growth, no redistribution policies in …

Many theoretical model show that redistribution causes low growth. However, cross-country regressions often suggest … that growth is positively related to redistribution. This paper analyzes that puzzle in an open economy framework. …

Is tax competition good for economic growth? The paper addresses this question by means of a simple model of economic … growth in which a wasteful Leviathan state sets taxes and provides productive input. Wasteful behaviour is restricted by the … on economic growth are ambiguous and that the elasticity of intertemporal substitution, which in this model equals the …