@article {1474500,
	title = {Taxation, Innovation, and Entrepreneurship},
	journal = {The Economic Journal},
	volume = {129},
	number = {620},
	year = {2019},
	pages = {1731-1781},
	abstract = {We explore optimal and politically feasible growth policies consisting of basic research investments and taxation. We show that the impact of basic research on the general economy rationalises a taxation pecking order with high labour taxes and low profit taxes. This scheme induces a significant proportion of agents to become entrepreneurs, thereby rationalising substantial investments in basic research fostering their innovation prospects. These entrepreneurial economies, however, may make a majority of workers worse off, giving rise to a conflict between efficiency and equality. We discuss ways of mitigating this conflict, and thus strengthening political support for growth policies.},
	url = {https://doi.org/10.1111/ecoj.12588},
	author = {Schetter, Ulrich and Gersbach, Hans and Schneider, Maik T.}
}
