Data/hora: 09/06/2024 11:44:51

Provedor de dados: | Research in Agricultural & Applied Economics (AgEcon Searh)
País: | United States
Título: | AN AFRICAN GROWTH TRAP: PRODUCTION TECHNOLOGY AND THE TIME-CONSISTENCY OF AGRICULTURAL TAXATION, R&amp;D AND INVESTMENT
Autores: | McMillan,   Margaret S.; Masters,   William A.
Data: | 2001-04-13
Ano: | 2000
Palavras-chave: | International Development; Research and Development/Tech Change/Emerging Technologies.
Resumo: | Why do so many African governments consistently impose high tax rates and make little investment in productive public goods, when alternative policies could yield greater tax revenues and higher national income?  We posit and test an intertemporal political economy model in which the government sets tax and R&amp;D levels while investors respond with production.  Equilibrium policy and growth rates depend on initial cost structure.  We find that in many (but not all) African countries, low tax/high investment regimes would be time-inconsistent, primarily because production technology requires relatively large sunk costs.  For pro-growth policies to become sustainable, commitment mechanisms or new production techniques would be needed.
Tipo: | Working or Discussion Paper
Idioma: | Inglês

Identificador:

2444

http://purl.umn.edu/11839

Editor: | AgEcon Search

Relação:

Miscellaneous Papers&gt;Miscellaneous Papers

Harvard University Center for International Development Working Paper 48, Revised

Formato:

46

application/pdf