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Income Inequality, Tax Policy, and Economic Growth

Datos Bibliográficos

ID9719986
AutoresSiddhartha Biswas (0000-0003-1765-8696, University of North Carolina), Indraneel Chakraborty (0000-0001-9389-7985, University of Miami), Rong Hai (0000-0001-6304-9328, University of Miami)
Año2017
Volumen127
Número601
Páginas688-727
Fecha de publicación2017-05-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12485
OpenAlexW3121540219
IdiomaEN
Citas recibidas16
Referencias citadas66

We investigate how the reduction of income inequality through tax policy affects economic growth. Taxation at different points of the income distribution has heterogeneous impacts on households’ incentives to work, invest, and consume. Using US state‐level data and micro‐level household tax returns over the last three decades, we find that reducing income inequality between low and median income households improves economic growth. However, reducing income inequality through taxation between median and high‐income households reduces economic growth. These asymmetric economic growth effects are attributable both to supply‐side factors (i.e. changes in small business activity and labour supply) and to consumption demand

Development economics · Economic inequality · Economic policy · Economics · Inequality · Labour economics · Public economics · Tax policy · Tax reform · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality · Mathematics

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Obras citantes distintas16
Citas por año2,29
Intervalo de citas2019 - 2026 (8)
Velocidad de citacióncurrent
Altamente citadoNo
Tipos de citaNeutras: 16
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