Ramsey Fiscal Policy and Endogenous Growth: A Comment

Jenn-hong Tang ()
Additional contact information
Jenn-hong Tang: Department of Economics, National Tsing-Hua University

Economics Bulletin, 2010, vol. 30, issue 3, 2450-2456

Abstract: Recently, Park (2009, Economic Theory 39, 377--398) extended the Barro endogenous growth model (1990) by assuming that tax rate is optimally chosen by the government and labor supply is elastic. Park claimed to have proved the existence of multiple balanced growth paths that exhibit zero growth rate and local indeterminacy. In this comment, it is shown that his claim is incorrect. The model has a unique balanced growth path that may exhibit positive growth, and the model has no transitional dynamics.

Keywords: Fiscal Policy; Elastic Labor Supply; Growth (search for similar items in EconPapers)
JEL-codes: E6 (search for similar items in EconPapers)
Date: 2010-09-20
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I3-P224.pdf (application/pdf)

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:ebl:ecbull:eb-09-00798

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().