Fiscal Policy and Growth: a Survey

Massimiliano Marzo

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: The lack of convergence of growth rates among the world economies is probably one of the most debated topics in the last few years in theoretical and empirical research. In this period we have observed a strong resurgence of the debate about long-run growth, starting from the initial contributions by Paul Romer (1986) and Robert Lucas (1988) who opened the so called Endogenous Growth Theory or New Growth Theory . The reason of this resurgence of interest lies in two important aspects left unsolved by the theoretical attempts of the 60s and 70s: first, the need to explain long-run growth determinants and secondly, to provide a careful explanation to the lack of convergence of growth rates among world economies footnote . The biggest achievement of the Endogenous Growth Theory is represented by the reconciliation of the diminishing returns hypothesis with the typical finding of empirical analyses, i.e. a growth rate continuously increasing.

Date: 1998-03
References: Add references at CitEc
Citations:

Downloads: (external link)
http://amsacta.unibo.it/4994/1/314.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:bol:bodewp:314

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().