EconPapers    
Economics at your fingertips  
 

Business Perceptions, Fiscal Policy and Growth

Florian Misch, Norman Gemmell () and Richard Kneller ()

Discussion Papers from University of Nottingham, CREDIT

Abstract: This paper develops endogenous growth models in which the government uses income taxation to finance different types of public services, public investment, or both. The paper then assesses the merits of business perceptions of alternative fiscal policy related growth constraints as guides for imperfectly informed governments. The models demonstrate that business perceptions may be misleading except when firms compare different types of public services or different types of public capital. It is also shown that the theoretical predictions regarding how firms most likely rank constraints correspond fairly well to the ranking of constraints by firms in the World Bank's Enterprise Surveys.

Keywords: Economic Growth; Productive Public Spending; Imperfectly Informed Governments; Optimal Fiscal Policy; Constraints to Growth; Investment Climate Assessments (search for similar items in EconPapers)
Date: 2008-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.nottingham.ac.uk/credit/documents/papers/08-10.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:not:notcre:08/10

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, CREDIT School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().

 
Page updated 2021-06-09
Handle: RePEc:not:notcre:08/10