Tax structure, growth, and welfare in the UK

Angelopoulos, K., Malley, J. and Philippopoulos, A. (2012) Tax structure, growth, and welfare in the UK. Oxford Economic Papers, 64(2), pp. 237-258. (doi:10.1093/oep/gpr035)

Full text not currently available from Enlighten.

Abstract

This paper studies the quantitative implications of changes in the composition of taxes for long-run growth and welfare in the UK economy. Our results suggest that if the goal of tax policy is to promote long-run growth by altering relative tax rates in a budget neutral fashion, then it should reduce labour taxes and increase capital and/or consumption taxes. In contrast, if the aim is to promote welfare, substantial gains can be obtained from tax reforms that decrease the capital tax rate relative to the labour and consumption tax rates or that reduce labour relative to consumption taxes. These findings highlight the importance of the choice of tax structure in policy design.

Item Type:Articles
Additional Information:art. no. gpr035
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Philippopoulos, Prof Apostolis and Malley, Professor James and Angelopoulos, Dr Konstantinos
Authors: Angelopoulos, K., Malley, J., and Philippopoulos, A.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Oxford Economic Papers
ISSN:0030-7653
Published Online:02 September 2011

University Staff: Request a correction | Enlighten Editors: Update this record