Finite lifetimes and government spending in an endogenous growth model

Stephen Kosempel

Working Papers from University of Guelph, Department of Economics and Finance

Abstract: This paper studies the long-run effects of government spending and taxation in an endogenous growth model with finite lived agents. Public expenditures are classified according to their type: Type I expenditures enter as inputs into the production function. Type II expenditures enter as goods into the utility function. Mourmouras and Lee (1999) demonstrated that when only Type I expenditures are incorporated into the analysis, the tax rate that maximizes the welfare of the average agent is invariant to life expectancy. It will be demonstrated that their result no long holds when their framework is extended to incorporate Type II expenditures..

JEL-codes: E62 H54 O41 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Economics and Business 56, 2004, 197-210.

Downloads: (external link)
http://www.uoguelph.ca/economics/repec/workingpapers/2003/2003-13.pdf (application/pdf)

Related works:
Journal Article: Finite lifetimes and government spending in an endogenous growth model (2004)
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:gue:guelph:2003-13

Access Statistics for this paper

More papers in Working Papers from University of Guelph, Department of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Stephen Kosempel (kosempel@uoguelph.ca).