A note on capolupo's ‘output taxation, human capital and growth’

Abstract

This note intends to show that the solution of Capolupo's model (‘Output Taxation, Human Capital and Growth’, The Manchester School, Vol. 68, 2000, No. 2, pp. 166–183) is not satisfactory for two reasons: first it is possible to tackle the question of optimal taxation in the steady state analytically without applying numerical simulations; second I highlight a mistake of the author which crucially affects the paper's result.