Work

Comprehensive income taxation, investments in human and physical capital, and productivity

Year: 1993

Type: article

Abstract: This paper analyses the implications of the comprehensive income tax for the accumulation of human and physical capital and for the overall productivity level of the economy. A comprehensive income tax, applying to both labour income and capital income, is shown to discriminate against investments in human capital relative to investments in physical capital. It has an adverse impact on human capital accumulation and lowers productivity.

Source: Journal of Public Economics

DOI: 10.1016/0047-2727(93)90093-9

Authors: Marc Nerlove, Assaf Razin, Efraim Sadka, Robert K. von Weizsäcker

Institutions: University of Pennsylvania, Tel Aviv University, Martin Luther University Halle-Wittenberg

Language: English

Topic: Fiscal Policy and Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,510