COMPARATIVE DYNAMICS AND OPTIMAL FISCAL POLICY IN A SIMPLE MODEL OF ENDOGENOUS GROWTH

Christian Weber

Metroeconomica, 2006, vol. 57, issue 2, 257-283

Abstract: I analyze optimal fiscal policy choices in a continuous time endogenous growth model similar to Barro’s. The government uses income taxes from representative ‘rich’ and ‘poor’ households to finance purchases of productive goods and to make transfer payments to poor households. Increases in government purchases can increase the growth rate, while increases in transfers reduce growth. I examine the socially optimal allocation of government resources to purchases and transfer payments and describe conditions under which both the rich and poor would benefit from cuts in entitlements if the savings are used to finance increased government purchases of productive goods.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/j.1467-999X.2006.00242.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:metroe:v:57:y:2006:i:2:p:257-283

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is currently edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().