Toshiki Tamai () (Graduate School of Economics, Nagoya University)
Abstract
This paper develops an endogenous growth model with public capital and imperfect competition. In the model, we take into account monopolistic competition of intermidiate sector and endogenous determination of the number of firms in the sector by considering the fixed cost to keep production going. We show that the number of firms in intermidiate sector is affected by fiscal policy. Furthermore, it is demonstrated in the paper that market structure plays a key role in reducing the growth-maximizing tax rate.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Volume (Year): 15 (2006) Issue (Month): 11 () Pages: 1-10 Download reference. The following formats are available: HTML,
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Handle: RePEc:ebl:ecbull:v:15:y:2006:i:11:p:1-10
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Find related papers by JEL classification: O1 - Economic Development, Technological Change, and Growth - - Economic Development H5 - Public Economics - - National Government Expenditures and Related Policies
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