Public Expenditures, Taxes, Federal Transfers, and Endogenous Growth

Liutang Gong and Heng-Fu Zou ()

No 524, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: This paper extends the Barro (1990) model with single aggregate government spending and one flat income tax to include public expenditures and taxes by multiple levels of government. It derives the rate of endogenous growth and, with both simulations and special examples, examines how that rate changes with respect to federal income tax, local taxes, and federal transfers. It also discusses the growth and welfare-maximizing choices of taxes and federal transfers.

Keywords: Public expenditures; Taxes; Federal transfers; Endogenous growth (search for similar items in EconPapers)
JEL-codes: E0 H2 H4 H5 H7 O4 R5 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011
New Economics Papers: this item is included in nep-acc, nep-dge, nep-fdg, nep-mac, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: Public Expenditures, Taxes, Federal Transfers, and Endogenous Growth (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:524

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