Fiscal Federalism, Public Capital Formation, and Endogenous Growth

Liutang Gong and Heng-Fu Zou ()

Annals of Economics and Finance, 2003, vol. 4, issue 2, 471-490

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)
Date: 2003
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Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Fiscal Federalism, Public Capital Formation, and Endogenous Growth (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2003:v:4:i:2:p:471-490

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