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Numerical experiments under this alternative specification of the utility function show that the evolution of taxes still matters.
We find that 80% of the decline in hours worked can be accounted for by the evolution of taxes in an otherwise standard neoclassical growth model.
What has been the impact of the evolution of taxes and total factor productivity (TFP) on aggregate hours worked and output?
Our results show that the evolution of aggregate hours worked in Spain has been consistent with the evolution of taxes, whereas lack of TFP growth has had a minor impact on hours worked.
In contrast to the evolution of taxes, the lack of TFP growth in Spain since 1994 does not generate a substantial impact on the evolution of hours worked in our model.
Given that our goal is to quantify the implications of the evolution of taxes on hours worked, our principal exercise is to compare our benchmark model results with a counterfactual in which we hold tax rates and government consumption constant at their initial levels.
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The endogenous variables react to the evolution of the exogenous variables, which are the evolution of TFP of GDP at factor prices, the evolution of the working-age population, and the evolution of tax rates as measured in the data.
But the more I study tax history, the more I'm impressed with the centrality of tax collection in the evolution of U.S. tax policy.
The survey found: "There is a risk that in the near future Luxembourg could face lower revenues from multinational enterprises as a consequence of the ongoing evolution of international tax regulations that necessarily trigger changes of tax rulings".
So, the evolution of top tax rates is a good predictor of changes in pre-tax income concentration.
This paper measures the 2007 13 evolution of employment tax rates in the U.K. and the U.S. The U.S. changes are greater, in the direction of taxing a greater fraction of the value created by employment, and primarily achieved with new implicit tax rates.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com