Optimal Capital Taxation in a Neoclassical Growth Model

This paper studies the optimal factor tax incidence in a neoclassical growth model with a given share of government expenditure in output. In the Ramsey planner's optimization, the effect of next period's capital on government expenditure equals the given share of the marginal product of capital. Capital accumulation reduces the discounted net marginal product of next period's capital by way of increasing government expenditure. In order to internalize the distortion, it is optimal to tax capital income in the long run.     

Residential Mobility and the Housing Market in a Two-sector Neoclassical Growth Model

The impact of residential mobility and competitive housing markets on long run growth is examined using a two-sector general equilibrium overlapping-generations model in continuous time. There is an infinity of agents with finite lives who adjust their housing consumption by moving, which is costly. We explore the model's steady-state properties, first with a free housing market, then under rent control when the market clears through restrictions on the frequency of moves. Rent controls do not just reduce welfare; they may increase the steady-state capital-labor ratio.     

The Optimal Tax Treatment of Housing Capital in the Neoclassical Growth Model

Should housing capital be taxed like other forms of capital? We analyze this question within a version of the neoclassical growth model. We derive the optimal tax treatment of housing capital vis‐à‐vis business capital allowing for relatively general household preferences. In the first‐best, the tax treatment of business and housing capital should always be the same. In the second‐best, in contrast, the optimal tax treatment of housing capital depends on the elasticities of substitution between nonhousing consumption, housing, and leisure. This is because housing taxation may be used to alleviate the distorting effect of taxing labor. As a result, the optimal tax treatment of housing capital may be different from that of business capital. We complement these analytical results with a numerical analysis.     

劳动力流动与收入收敛--一个改进的新古典增长模型及对中国的启示

文章将劳动力的流动性引进新古典增长模型,对于一个拥有一定资本密度的小型开放经济体而言,当它低于稳态时,劳动力的迁出会加快收入收敛的速度,但同时会对整体资本投资产生抑制作用;在收入水平相对较低时,这种抑制作用会超过其正面作用,从而劳动力流动会减缓收入收敛的速度;但从长期来看,随着劳动力流动性的提高,正面作用最终会占据主导地位,从而劳动力的无限自由流动会最终导致收入收敛于稳态.     

Capital Mobility, Consumption Substitutability and the Effects of Monetary Policy in Open Economies

Abstract. I use a dynamic general equilibrium two‐country optimizing model to analyze the implications of international capital mobility for the short‐run effects of monetary policy in an open economy. The model implies that the substitutability of goods produced in different countries plays a central role for the impact of changes in the degree of international capital mobility on the effects of monetary policy. Paralleling the results of the traditional Mundell–Fleming model, a higher degree of international capital mobility magnifies the short‐run output effects of monetary policy only if the Marshall–Lerner condition, which is linked to the cross‐country substitutability of goods, holds.     

国内资本流动对我国区域经济增长的影响

通过运用1992～2002年我国的分省时间序列数据和截面数据,对国内资本的跨省流动性及其对我国区域经济增长差异的影响进行实证研究。研究表明,国内资本的跨省流动性在1992～1993年较差,之后逐渐增强。国内资本的跨省流向总体上是流向增长较慢的省份。国内资本的这种流向以及流动程度不断增强,促使各省之间的GDP增长率差异显著下降。     

Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism

The idea of family altruism is that parents care only about their children's income and not about the use of this income made by the children. First, we establish dynamical properties which place the OLG model with family altruism halfway between the model with pure life‐cyclers ( Diamond 1965 ; American Economic Review 55, 1126–1150) and the one with dynastic altruism ( Barro 1974 ; Journal of Political Economy 82, 1095–1117). Then, we show that this concept leads to interesting fiscal policy conclusions less clear‐cut and more realistic than those obtained with the two previous standard OLG models: a pay‐as‐you‐go social security is neutral but not a public debt.     

Employment Subsidy with Capital Mobility

Most models of tax competition assume full employment. Yet, actually one often observes that fiscal competition, particularly when it is aimed at attracting investment, is motivated by the concern of fighting unemployment and enhancing job creation. The present paper considers a multicountry model with capital mobility and unemployment. Fiscal policy has two opposing objectives: financing unemployment insurance and increasing employment. In each country there is a majority vote on this policy.
The purpose of the paper is to analyse how opening borders to capital flows modifies the median voter's choice of the employment subsidy. Assuming that capital and labour are complements, economic integration is shown to raise the employment subsidy with fixed wages. This agrees with intuition as a larger employment subsidy attracts more capital. However, when wages are set by labour unions economic integration can change the median voter's choice in either direction.     

Rich and Poor Countries in Neoclassical Trade and Growth

A neoclassical growth model provides an explanation for a 'poverty trap', 'club convergence', or 'twin peaks', in terms of specialisation and international trade. The model has many countries with identical linearly homogeneous technologies for producing three goods using capital and labour. With diverse initial endowments, initial equilibrium has unequal factor prices and two diversification cones. With savings out of wages, following Galor (1996), there may easily be multiple steady states. Poor countries converge to a low steady state while rich countries converge to a high one, even though all share identical technological and behavioural parameters.     

Long‐Run Growth Differences and the Neoclassical Growth Model

This paper shows that allowing factor income share differences across countries in a modified Solow model can imply differences in output growth rates across countries. Using cross‐sectional data for 52 countries, an empirical illustration shows that the parameters of the modified model are intuitively plausible, jointly significant, and possess modest explanatory power (R² around 0.25). The paper emphasizes the methodological importance of simplifying assumptions on applied theory.     

企业专用性人力资本与员工流动性

本文利用中国综合社会调查(CGSS)2006年的城市调查数据,分别用企业任期和在职培训时间作为企业专用性人力资本的替代变量,分析它们对员工流动性的影响,结果显示,企业专用性人力资本与员工辞职概率显著负相关,企业专用性人力资本水平越高的员工,主动离开企业的可能性就越小.同时还发现,作为通用性人力资本的工作经验与员工辞职概率之间的关系不明确;受教育年限和工资收入与员工辞职概率显著正相关;企业规模与员工辞职概率之间不存在显著的相关关系;相对于女性而言,在其他条件相同的情况下,男性辞职的可能性更大.     

新古典模型中收入和财富分配持续不平等的动态演化

本文讨论了当个人劳动能力和偏好存在差异的情况下，资本收入和劳动收入分配的差异如何通过遗产机制影响收入和财富分配的持续性不平等程度。论文分析表明：在偏好、个人劳动能力和个人收入的随机冲击的影响下，如果市场是完善的，整个经济系统存在收入和财富分配的稳定不平等状态，而且，这种稳定的不平等状态与初始的财富分配的不平等和一次性的产权配置都是无关的。最后，本文分析了资本收入税和劳动收入税对持续不平等程度的影响，通过分析指出：从长期来看，在劳动能力和初始财富存在差异而偏好没有差异的情况下，征收劳动收入税比征收资本收入税更有利于改善由于能力差异所造成的持续不平等。     

The Role of Human Capital and Population Growth in R&D‐based Models of Economic Growth*

Human capital accumulation is introduced in a growth model with R&D‐driven expansion in variety and quality of intermediate goods and knowledge spillovers from both research activities. Economic growth is no longer uniquely tied to population growth as previous growth models without scale effects suggest. The model predicts that economic growth depends positively on the rate of human capital accumulation and positively or negatively on population growth and is therefore supported by empirical evidence to a greater extent than previous models. In particular, long‐run growth is compatible with a stable population.     

Social Security Systems,Human Capital,and Growth in a Small Open Economy

We consider a small open economy in which the level of public education funding is determined by popular vote. We show that growth can be enhanced by the introduction of pay‐as‐you‐go pensions even if the growth rate of aggregate wages falls short of the interest rate. The reason is that the pay‐as‐you‐go (PAYG) system allows future retirees to partially internalize positive externalities of public education due to the positive effect of higher future labor productivity on their pension benefits. The majority support for education funding will be especially strong when the PAYG benefit formula is flat, i.e., progressively redistributive. If a flat benefit PAYG pension system is in place then the economy will achieve the highest growth rate relative to the alternative pension system designs. While such PAYG pension system may be opposed by the majority of working individuals due to inferior returns to their pension contributions relative to a funded scheme, it is likely to be politically sustained by a coalition of older individuals and lower income workers.     

Bank Fragility and International Capital Mobility

The paper presents a model of a small open economy with a fragile banking sector and imperfect international capital mobility. In this model, increased international integration of the market for bank deposits makes bank runs more likely, resulting in a welfare loss for the business sector. Bank depositors may gain or lose depending on the parameters. When depositors gain, whether the gains exceed the losses to the business sector depends on the size of the holdings of foreign assets relative to the deadweight costs of bank runs. Thus, limited international financial integration may not be desirable.     

International Capital Movements In the Solow and Overlapping Generations Growth Models*

This paper examines capital movements in the overlapping generations and Solow models. For the overlapping generations model, a simple compensation scheme is developed to show how the gaining generation(s) can always compensate the losing generation(s) and still gain in the move from autarky to free capital mobility. Moreover, unlike the Solow model, the move to an open economy for the overlapping generations model has a tendency to reduce the assets held by the capital-exporting country.     

Profit-Sharing and International Capital Mobility in Developing Countries

This paper uses a general equilibrium model incorporating rural–urban migration to analyze and contrast the short- and long-run effects of profit-sharing. Specifically examined are the effects of profit-sharing on rural–urban migration, the degree of competition among urban firms, and international mobility of capital. It is found that although profit-sharing may raise urban employment in the short run, the scheme reduces urban employment and lowers the inflow of foreign capital in the long run.     

Neoclassical Growth, Manufacturing Agglomeration, and Terms of Trade

This study reverses the prediction of geography and growth models that trade integration may cause income divergence. Moreover, a new dynamic welfare gain of trade openness is identified. These results are obtained from embedding a new economic geography model into a neoclassical growth model. Starting from symmetric countries, a country that accumulates more capital than the other increases its home market size, improves its terms of trade, and lowers its relative consumption price index, because trade costs drive a wedge in between relative producer and consumption price indices. Both effects in turn tend to increase its marginal revenue product of capital relative to the other country (divergence forces), while factor substitution diminishes its marginal revenue product of capital (convergence force). Reducing trade costs decreases the wedge and weakens the divergence forces, while the convergence force is unaffected. Hence, divergence is more likely with higher rather than lower trade costs.