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Fiscal Policy Analysis under Alternative Mechanisms of Endogenous Growth

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Author Info

  • Einarsson, T.
  • Marquis, M.H.

Abstract

The endogenous growth models of Lucas (1988) and Uzawa (1965) that rely on a formal training technology to generate growth, and the endogenous technologiacl change model of Romer (1990) fit the long-run secular growth path of the US economy equally well. However, the Romer model yields significantly larger welfare cists associated with distortionary taxes on factor income. Moreover, the short-run dynamic properties of the two types of endogenous growth models are very different.

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Bibliographic Info

Paper provided by Department of Economics, Florida State University in its series Working Papers with number 1997_01_01.

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Length: 28 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fsu:wpaper:1997_01_01

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Keywords: ECONOMIC GROWTH ; FISCAL POLICY ; TECHNOLOGY;

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Cited by:
  1. Richard Kneller & Norman Gemmell, 2002. "Fiscal Policy, Growth and Convergence in Europe," European Economy Group Working Papers 14, European Economy Group.
  2. Norman Gemmell, 2010. "Fiscal Policy in a Growth Framework," Working Papers id:3163, eSocialSciences.
  3. Einarsson, T. & Marquis, M.H., 1996. "Formal Training, On-the-Job Training and the Allocation of Time," Working Papers 1996_06_01, Department of Economics, Florida State University.

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