01851cas a2200253 a 4500 AALejournalIMF007897 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849943 1018-5941 BD-DhAAL BD-DhAAL Roubini, Nouriel. Taxation and Endogenous Growth in Open Economies / Nouriel Roubini, Gian Milesi-Ferretti. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the effects of taxation of human capital, physical capital and foreign assets in a multi-sector model of endogenous growth. It is shown that in general the growth rate is reduced by taxes on capital and labor (human capital) income. When the government faces no borrowing constraints and is able to commit to a given set of present and future taxes, it is shown that the optimal tax plan involves high taxation of both capital and labor in the short run. This allows the government to accumulate sufficient assets to finance spending without any recourse to distortionary taxation in the long run. When restrictions to government borrowing and lending are imposed, the model implies that human and physical capital should be taxed similarly. Mode of access: Internet Milesi-Ferretti, Gian. IMF Working Papers; Working Paper ; No. 1994/077 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/077/001.1994.issue-077-en.xml IMF e-Library