Deficit, Seigniorage and the Growth Laffer Curve in developing countries
AbstractThe endogenous growth literature has established the existence of an inverted-U curve between taxes and economic growth, namely a Growth Laffer Curve (GLC). We develop a growth model with public investment as the engine of perpetual growth, and look for the effect of deficit, tax and money financing on economic growth. We study in particular the way fiscal and monetary policies (through deficit and seigniorage respectively) deform the GLC. An empirical section based on a panel of developing countries provides GMM-system estimators that support our theoretical conclusions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CERDI in its series Working Papers with number 200926.
Date of creation: 2009
Date of revision:
Growth Laffer Curve; deficit; seigniorage; developing countries; GMM; panel data;
Other versions of this item:
- Hélène Ehrhart & Alexandru Minea & P. Villieu, 2011. "Deficit, Seigniorage and the Growth Laffer Curve in developing countries," Working Papers halshs-00554257, HAL.
- NEP-ALL-2010-01-30 (All new papers)
- NEP-DEV-2010-01-30 (Development)
- NEP-FDG-2010-01-30 (Financial Development & Growth)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mendizabal, Hugo Rodriguez, 2006. "The Behavior of Money Velocity in High and Low Inflation Countries," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(1), pages 209-228, February.
- Lucotte, Yannick, 2010.
"Adoption of inflation targeting and tax revenue performance in emerging market economies: An empirical investigation,"
23871, University Library of Munich, Germany.
- Yannick Lucotte, 2010. "Adoption of inflation targeting and tax revenue performance in emerging market economies: An empirical investigation," Post-Print halshs-00505140, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.