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In an endogenous economic model with overlapping generations and human capital accumulation, progressive taxation of labor incomes hurt growth in the long-run and intensify market failures associated with the intergenerational spillovers from human capital accumulation. In an open economy, however, these taxes result to savings that may improve the employment prospects of low skilled and eventually add to economic growth.

This paper examines the impact of cycles on long-term growth in the presence of entry and exit of firms. It is argued that whereas mild fluctuations may be beneficial for [...]

The calculations by Klein and Neumann on how much seigniorage revenue is received by the government, in the case of Germany, are incorrect on several counts. They have not taken into account stock effects related to revenue, their concept of debt as part of their government revenue definition is misleading, and a revaluation term is mistakenly included as part of their concept of fiscal seigniorage. This means that the government share of seigniorage is 64.8%, after revisions, rather than the 38.3% calculated by Klein and Neumann.