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| Takeo Kozu |
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| ''Optimal factor income taxation in a neo-classical growth model with endogenous fertility'' |
| ( 2005, Vol. 5 No.9 ) |
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| This note studies optimal taxation of income in a growth model with endogenous fertility proposed by Barro and Becker(1989). It is found that the optimal tax rate on capital income converges to zero after one transition period, and the government should not tax labor income in period 1 and thereafter. These results are obtained for a general period utility function. |
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| Keywords: |
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
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| Manuscript Received : Apr 11 2005 | | Manuscript Accepted : Oct 25 2005 |
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