Central Government Budget Deficits: Their Effects on Real GNP and Other Variables - The AMRC Model

Willie G. Belton Belton (), Richard Cebula (), Ira S. Saltz () and Ali Uysal
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Willie G. Belton Belton: School of Economics, Georgia Institute of Technology, Postal: Atlanta, Georgia 30332, USA, http://www.gatech.edu/
Ira S. Saltz: College of Business Administration University of Central Arkansas, Postal: 201 Donaghey Avenue Conway, AR 72035 USA, http://www.uca.edu/
Ali Uysal: The London School of Economics and Political Science, Postal: Houghton Street, London WC2A 2AE, UK, http://www.lse.ac.uk/

Economia Internazionale / International Economics, 1994, vol. 47, issue 1, 7-33

Abstract: This study develops a theoretical model to examine the impact of central government budget deficits on economic systems. The model addresses the issue from a supply-side perspective. It is shown that the budget deficit can itself he used by governments as a policy tool to influence the level of economic activity. The model also develops the concept of an optimum tax rate and an optimum budget deficit.

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:ris:ecoint:0425

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