Fiscal policies and growth
Davide Fiaschi ()
Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna
In this work we present an endogenous growth model where the Government finances a pubblic good by imposing two taxes, one on the return of the accumlative factor and the other on the return of the not accumulative factor. In an economy where individuals have different initial factor endowments, we determine the fiscal policy that maximizes the growth rate, the poltical equilibrium and , finally, the socially optimal fiscal policy. Because of the heterogeneity of individual's endowments maximizing growth rate does not imply maximum welfare; the political equilibrium fiscal policy does not maximise the growth rate, but it could be socially optimal if the inequality aversion degree is sufficiently high.
References: Add references at CitEc
Citations View citations in EconPapers (39) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:bol:bodewp:261
Access Statistics for this paper
More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Series data maintained by Task Force CeSIA DSE ().