Rents are distributed according to the different competencies (skills and capabilities) and complementarities needed to produce complex products that incorporate knowledge. A production structure based on natural resources or on cheap labor generates rent-seeking behavior reinforcing that pattern and resisting structural change. This paper sheds light on the role played by these factors in Latin America.
We study the optimal design of corporate tax policy in a textbook life-cycle model featuring
- 03/04/2025
- Working Paper