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Publications

 

Industrial dynamics and the neolclassical growth model.

Allocating Government Education Expenditures across K-12 and College Education.

Labor Market Trends with Balanced Growth.

Tax Reform with Useful Public Expenditures.

The Transition from Dirty to Clean Industries: Optimal Fiscal Policy in a Two-Sector Model of Endogenous Growth.

Growth Effects of Shifting from a Graduated- Rate Tax System to a Flat Tax.

Fiscal Policy and Productivity Growth in the OECD.

Uniform Two-Part Tariffs and Below Marginal Cost Prices: Disneyland Revisited.

Optimal Fiscal Policy, Public Capital, and the Productivity Slowdown.

On Public Capital Analysis with State Data.

The Link Between Tax Rates and Foreign Direct Investment.

Welfare, Stabilization or Growth: A Comparison of Different Fiscal Objectives.

Equivalence of the Standard and Modified Switching Regression Models.

A Normative Analysis of Public Capital.

Optimal Tax Rules in a Dynamic Stochastic Economy with Capital.

A Diagnostic Test Without Numerical Integration.

Backward Solving Quarterly Models with Seasonal or Annual Shocks.

Health Plan Choice and the Utilization of Health Care Services.

The Demand for Employment-Based Health Insurance Plans.

Employment Based Health Insurance.

 

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The Transition from Dirty to Clean Industries: Optimal Fiscal Policy in a Two-Sector Model of Endogenous Growth.

With Stephen F. Hamilton, Journal of Environmental Economics and Management. 2004, Vol. 48, 1050-1077.

Abstract: We examine the effects of tax reform in an endogenous growth with two types of useful public expenditures. The optimal fiscal policy shifts the tax base to private consumption tax and generally requires a change in the size of government. If a tax reform holds the size of government fixed to satisfy a revenue-neutrality constraint, then the reform will be suboptimal; theory alone cannot tell us if welfare will be improved. For some model calibrations, we find that a revenue-neutral consumption tax reform can result in large welfare gains. For other quite plausible calibrations, the exact same reform can result in tiny or even negative welfare gains as the revenue-neutrality constraint becomes more severely binding. Overall, our results highlight the uncertainty surrounding the potential welfare benefits of fundamental tax reform.