Public Expenditures, Taxes, Federal Transfers, and Endogenous Growth
AbstractThis 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.
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Bibliographic InfoPaper provided by China Economics and Management Academy, Central University of Finance and Economics in its series CEMA Working Papers with number 524.
Length: 21 pages
Date of creation: 2011
Date of revision:
Public expenditures; Taxes; Federal transfers; Endogenous growth;
Other versions of this item:
- Liutang Gong & Heng‐Fu Zou, 2011. "Public Expenditures, Taxes, Federal Transfers, and Endogenous Growth," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(6), pages 973-991, December.
- E0 - Macroeconomics and Monetary Economics - - General
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H4 - Public Economics - - Publicly Provided Goods
- H5 - Public Economics - - National Government Expenditures and Related Policies
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-11-07 (Accounting & Auditing)
- NEP-ALL-2011-11-07 (All new papers)
- NEP-DGE-2011-11-07 (Dynamic General Equilibrium)
- NEP-FDG-2011-11-07 (Financial Development & Growth)
- NEP-MAC-2011-11-07 (Macroeconomics)
- NEP-PBE-2011-11-07 (Public Economics)
- NEP-PUB-2011-11-07 (Public Finance)
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.:
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- Liutang Gong & Heng-fu Zou, 2011.
"Fiscal Federalism, Public Capital Formation, and Endogenous Growth,"
CEMA Working Papers
488, China Economics and Management Academy, Central University of Finance and Economics.
- Liutang Gong & Heng-fu Zou, 2003. "Fiscal Federalism, Public Capital Formation, and Endogenous Growth," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 471-490, November.
- Liutang Gong & Heng-fu Zou, 1998. "Fiscal Policies in a Finite Horizon Model with the Spirit of Capitalism," CEMA Working Papers 102, China Economics and Management Academy, Central University of Finance and Economics.
- Chu, Hsun & Lai, Ching-Chong & Cheng, Chu-Chuan, 2013. "Tax Havens, Growth, and Welfare," MPRA Paper 52878, University Library of Munich, Germany, revised Sep 2013.
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