Some countries rely relatively heavily on taxes that distort economic behavior, and others do not. A recent

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Some countries rely relatively heavily on taxes that distort economic behavior, and others do not. A recent econometric study found that countries in the latter category tend to grow faster than countries in the former [Kneller et al., 1999]. Use the discussion surrounding Figure 15.9 to explain this phenomenon.

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Public Finance

ISBN: 9780073511283

8th Edition

Authors: Harvey Rosen, Ted Gayer

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