Can waste improve welfare?

• 成果类型: Article
• 署名作者: Pelloni, A; Waldmann, R
• 署名单位: University of Manchester; University of Sassari; G d'Annunzio University of Chieti-Pescara
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(99)00049-3
• 发表日期: 2000
• 页码: 45-79
• 关键词: growth; taxes; spillover; Labour supply; welfare

摘要

In models with a capital spillover, the market outcome is not Pareto efficient since agents ignore the positive externalities caused by investment. One might conclude that taxes on investment or subsidies to consumption will reduce welfare. However, in a model of endogenous growth, either a small tax on capital income, whose proceeds are wasted, increases growth and welfare or a small marginal subsidy to consumption increases growth and welfare. Also if the tax on capital income does not increase growth, a lump sum tax whose proceeds are wasted increases growth and, for a wide range of parameter values, increases welfare. (C) 2000 Elsevier Science S.A. All rights reserved.