Tax reforms and inequality: theoretical and empirical implications

In this paper we examine the effect of tax policy on the relationship between inequality and growth in a two-sector non-scale model. With non-scale models, the longrun equilibrium growth rate is determined by technological parameters and it is independent of macroeconomic policy instruments. However, this fact does not imply that fiscal policy is unimportant for long-run economic performance. It indeed has important effects on the different levels of key economic variables such as per capita stock of capital and output. Hence, although the economy grows at the same rate across steady states, the bases for economic growth may be different.The model has three essential features. First, we explicitly model skill accumulation, second, we introduce government finance into the production function, and we introduce an income tax to mirror the fiscal events of the 1980¿s and 1990¿s in the US. The fact that the non-scale model is associated with higher order dynamics enables it to replicate the distinctly non-linear nature of inequality in the US with relative ease. The results derived in this paper attract attention to the fact that the non-scale growth model does not only fit the US data well for the long-run (Jones, 1995b) but also that it possesses unique abilities in explaining short term fluctuations of the economy. It is shown that during transition the response of the relative simulated wage to changes in the tax code is rather non-monotonic, quite in accordance to the US inequality pattern in the 1980¿s and early 1990¿s.More specifically, we have analyzed in detail the dynamics following the simulation of an isolated tax decrease and an isolated tax increase. So, after a tax decrease the skill premium follows a lower trajectory than the one it would follow without a tax decrease. Hence we are able to reduce inequality for several periods after the fiscal shock. On the contrary, following a tax increase, the evolution of the skill premium remains above the trajectory carried on by the skill premium under a situation with no tax increase. Consequently, a tax increase would imply a higher level of inequality in the economy

Tax reforms and inequality: theoretical and empirical implications

In this paper we examine the effect of tax policy on the relationship between inequality and growth in a two-sector non-scale model. With non-scale models, the longrun equilibrium growth rate is determined by technological parameters and it is independent of macroeconomic policy instruments. However, this fact does not imply that fiscal policy is unimportant for long-run economic performance. It indeed has important effects on the different levels of key economic variables such as per capita stock of capital and output. Hence, although the economy grows at the same rate across steady states, the bases for economic growth may be different.The model has three essential features. First, we explicitly model skill accumulation, second, we introduce government finance into the production function, and we introduce an income tax to mirror the fiscal events of the 1980¿s and 1990¿s in the US. The fact that the non-scale model is associated with higher order dynamics enables it to replicate the distinctly non-linear nature of inequality in the US with relative ease. The results derived in this paper attract attention to the fact that the non-scale growth model does not only fit the US data well for the long-run (Jones, 1995b) but also that it possesses unique abilities in explaining short term fluctuations of the economy. It is shown that during transition the response of the relative simulated wage to changes in the tax code is rather non-monotonic, quite in accordance to the US inequality pattern in the 1980¿s and early 1990¿s.More specifically, we have analyzed in detail the dynamics following the simulation of an isolated tax decrease and an isolated tax increase. So, after a tax decrease the skill premium follows a lower trajectory than the one it would follow without a tax decrease. Hence we are able to reduce inequality for several periods after the fiscal shock. On the contrary, following a tax increase, the evolution of the skill premium remains above the trajectory carried on by the skill premium under a situation with no tax increase. Consequently, a tax increase would imply a higher level of inequality in the economy

Report on applying agreed-upon procedures of Kossuth Connections, Algona, Iowa, and the Iowa Commission on Volunteer Services within the Iowa Department of Economic Development, now known as the Iowa Economic Development Authority, for the period October 2010 through June 2011

Report on applying agreed-upon procedures of Kossuth Connections, Algona, Iowa, and the Iowa Commission on Volunteer Services within the Iowa Department of Economic Development, now known as the Iowa Economic Development Authority, for the period October 2010 through June 2011

Re-Engineering CTE in Iowa: Aligning Career and Technical Education Reform, Workforce Development and Economic Development, August 2007

Iowa is a relatively small state and is on the rebound economically. It has an overall population that is stable, but which is shifting within the state from more rural areas to suburban and urban centers. There is a very tight labor market with high levels of employment. Iowa now has a time-sensitive opportunity to exert global leadership in renewable energy, while maintaining its leadership in other key industries like finance and agriculture.

Workforce Training and Economic Development Fund Annual Progress Report, 2014 December 9, 2014

The Department of Education, Division of Community Colleges, will annually provide the State Board of Education with the Workforce Training and Economic Development Fund Annual Progress Report. Administration and oversight responsibility for the fund was transferred from the Iowa Economic Development Authority to the Iowa Department of Education effective July 1, 2013 (FY 2014). This report is the first annual progress report produced and distributed by the Iowa Department of Education. The full report outlines the programs, projects, and initiatives that the community colleges have implemented during the past fiscal year.

Endogenous growth with capital in R&D production functions

[eng] In this paper we claim that capital is as important in the production of ideas as in the production of final goods. Hence, we introduce capital in the production of knowledge and discuss the associated problems arising from the public good nature of knowledge. We show that although population growth can affect economic growth, it is not necessary for growth to arise. We derive both the social planner and the decentralized economy growth rates and show the optimal subsidy that decentralizes it. We also show numerically that the effects of population growth on the market growth rate, the optimal growth rate and the optimal subsidy are small. Besides, we find that physical capital is more important for the production of knowledge than for the production of goods.

Endogenous growth with capital in R&D production functions

[eng] In this paper we claim that capital is as important in the production of ideas as in the production of final goods. Hence, we introduce capital in the production of knowledge and discuss the associated problems arising from the public good nature of knowledge. We show that although population growth can affect economic growth, it is not necessary for growth to arise. We derive both the social planner and the decentralized economy growth rates and show the optimal subsidy that decentralizes it. We also show numerically that the effects of population growth on the market growth rate, the optimal growth rate and the optimal subsidy are small. Besides, we find that physical capital is more important for the production of knowledge than for the production of goods.

Leaf development and growth of selected sugarcane clones in a subtropical environment

The objective of this work was to compare phyllochron and leaf area on individual stalks of selected sugarcane (Saccharum officinarum) clones grown in a subtropical environment. A two-year field experiment was carried out in Santa Maria, RS, Brazil, during the 2007/2008 and 2008/2009 growing seasons. Three sugarcane clones were used: IAC 822045 (early), SP 711406 (median) and CB 4176 (late), in a complete randomized block design, with four replications. Expanded leaf and total leaf (tips) number were determined, and expanded leaf area was measured. The phyllochron (ºC day leaf-1) based on expanded and tip leaf number was estimated, using 10ºC as base temperature. Allometric relationships between individual area and number of expanded leaves were fitted. Phyllochron was analysed as a four-factor experiment: clone, growing season, phyllochron phase, and phyllochron type. The early clone had the greatest potential for growing in a subtropical climate because of higher leaf output and leaf area.

FDI from European Union to Western Balkan Countires: is the economic development being intensified in the region?

La inversió estrangera directa és important a causa dels seus avantatges per al país d'acollida, per exemple augmentarà la competitivitat i s’intensifica el desenvolupament. Els avantatges són significatives als països dels Balcans occidentals que s'enfronten a les dificultats de la competència i el creixement més baix de la UE-27. El treball analitza el tipus dominant de la IED de la UE-27 a la regió dels Balcans Occidentals a escala nacional i sectorial per formar les implicacions sobre el futur creixement de la competitivitat i la intensitat del desenvolupament econòmic. Es troba que la IED horitzontal domina als Balcans occidentals, per tant, el creixement de la competitivitat i el desenvolupament econòmic es va intensificar a la regió.

The role of the tourism sector in economic development. Lessons from the Spanish experience

Tourism is one of the most important sectors in the global economy and is considered an efficient tool with which to promote economic growth. The case of Spain¿s economy is well known in this respect; in fact, widespread consensus exists on the part played by tourism in enhancing the industrialisation process in Spain and the part played by foreign currency receipts from tourism in financing the imports of capital goods, which made the expansion of manufacturing possible. This paper aims to assess the real role of foreign currency receipts from tourism in Spain¿s economy from 1960 to the present. The results of Spain¿s experience may well help to guide policy decisions in developing countries in similar circumstances.

The role of the tourism sector in economic development. Lessons from the Spanish experience

Tourism is one of the most important sectors in the global economy and is considered an efficient tool with which to promote economic growth. The case of Spain¿s economy is well known in this respect; in fact, widespread consensus exists on the part played by tourism in enhancing the industrialisation process in Spain and the part played by foreign currency receipts from tourism in financing the imports of capital goods, which made the expansion of manufacturing possible. This paper aims to assess the real role of foreign currency receipts from tourism in Spain¿s economy from 1960 to the present. The results of Spain¿s experience may well help to guide policy decisions in developing countries in similar circumstances.

Effect of light intensity and growth substratum on plant development and production of secondary metabolites in Cordia curassavica (Jacq.) Roem. & Schult

Cordia curassavica (Jacq.) Roem. & Schult. (Boraginaceae), also referred to as Cordia verbenacea DC, has been traditionally used for medicinal purposes. This study was driven to verify the behavior of the species in similar conditions to its natural environment, such as high light intensity and sandbank soil, and in conditions of low light intensity and fertilized substratum (dystroferric red nitosoil plus earthworm humus). The growth of the plant, the income of leaf crude extracts and, in the alcoholic extract, the number of substances found in thin layer cromatography and the toxicity of the substratum was observed. The results indicated that the growth of the root biomass, stem and leaves in discharge or lower light intensity was similar, but smaller in sandbank soil than in fertilized soil. The relative income of extracts in ether of petroleum and alcohol was larger in high light intensity and fertilized substratum. The light intensity and the substratum type didn't affect the number of substances detected in the alcoholic extract or the toxicity of this extract. Stains corresponding to the rosmarinic acid were only evidenced in some samples of the alcoholic extract, not allowing the verification of the effect of the treatments about its production.

Centre for Economic Development, Transport and the Environment : Prosperity, competitiveness, sustainable development

Broschure of Centre for Economic Development, Transport and the Environment.

Strategy for 2012–2015 : The Centres for Economic Development, Transport and the Environment create sustainable well-being

ELY Centres strategy brocshure.