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The Effects of Taxation in a Kaleckian Growth Model
Author(s) -
Laramie Anthony,
Mair Douglas
Publication year - 2003
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00169
Subject(s) - economics , growth model , investment (military) , macroeconomics , stock (firearms) , monetary economics , mechanical engineering , politics , political science , law , engineering
We analyse the effects of balanced budget changes in the tax rates on wages and profits on the trend component of fixed investment, on the trend rate of growth of capital stock and on the trend rates of capacity utilization. A modified version of Kalecki's growth model is used to analyse the long‐term effects of taxation on the growth performance of the economy.