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Mair, D., Hubbard, B., Nienow, P., Willis, I., Fischer, U. H. (2008). Diurnal fluctuations in glacier ice deformation: Haut Glacier d'Arolla, Switzerland. Earth Surface Processes and Landforms, 33(8), 1272-1284. Sponsorship: Carnegie Trust for the Universities of Scotland

We analyse the effects of balanced budget changes in the tax rates on wages and profits on the trend component of fixed investment, on the trend rate of growth of capital stock and on the trend rates of capacity utilization. A modified version of Kalecki’s growth model is used to analyse the long-term effects of taxation on the growth performance of the economy. The issue we explore in this paper is the feasibility of influencing the growth path of the economy by changing tax rates within a balanced budget framework .W e consider this issue from within the Kaleckian paradigm. Our principal reason for doing so is that a critical feature of Kalecki’s approach is the assumption of unused capacity of plant and labour. At first sight, adopting a Kaleckian approach to analyse the role of taxation on the long-term growth performance of the economy may appear unusual for two reasons: (1) in his writings on business cycles and growth Kalecki tended to assume away or minimize the role of the government budget; and (2) Kalecki did not explicitly incorporate the effects of taxation into the corpus of his work on longterm economic growth. Kalecki (1971/1937) had pointed out that an important implication of the publication of Keynes’s General Theory was that a whole new approach to the study of the effects of taxation on effective demand was required, but Kalecki never developed his tax analysis beyond a simple short-period model. We can only speculate why this was. We

Separate Scottish and the rest of U.K. systems of local business property taxation remain the only British example of regional fiscal autonomy. Scottish local business property taxes are L400m. per annum higher than if parity of treatment existed. A Kaleckian tax incidence model is used to identify the macroeconomic effects of the tax differential under varying assumptions about the treatment of the tax as a direct or overhead cost, with and without changes in firms' markups. The paper concludes that the tax differential alters the balance between the tax and profit shares of national income but not the level of income itself. Copyright 1992 by Scottish Economic Society.

Contemporary economics is regarded as being in a state of crisis. Many of the new directions in economics are fully consistent with the Scottish political economy tradition. An under-appreciated name in the Scottish tradition is John Rae (1796-1872). As well as making important contributions to the theories of capital and interest, Rae had an important influence on Thorstein Veblen and American institutionalist thought. Joseph Schumpeter was also strongly influenced by Rae and, through Schumpeter, Rae has influenced contemporary evolutionary theory of economic change. Rae represents an important Scottish political economy tradition, quite distinct from that of Adam Smith. Copyright 1990 by Scottish Economic Society.