Fiscal Federalism, Public Capital Formation, and Endogenous Growth

Liutang Gong and Heng-Fu Zou ()

No 488, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: This paper extends the Barro (1990) growth model with one aggregate government spending and one flat income tax to include federal and local public consumption, federal and local public capital formation, federal and local taxes, and federal transfers to locality. It derives the rate of endogenous growth and examines how the growth rate and welfare respond to changes in federal taxes, local taxes, and federal transfers.

Keywords: Fiscal federalism; Public expenditures; Public capital; Taxes; Federal transfers; Endogenous growth (search for similar items in EconPapers)
JEL-codes: E0 G1 H0 O0 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2011
New Economics Papers: this item is included in nep-acc, nep-dge, nep-fdg, nep-geo, nep-mac, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 471-490, November.

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http://down.aefweb.net/WorkingPapers/w488.pdf (application/pdf)

Related works:
Journal Article: Fiscal Federalism, Public Capital Formation, and Endogenous Growth (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:488

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