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Fiscal Policy and Growth in the Context of European Integration

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  • Paul R. Masson

Abstract

The paper considers the issue of whether a supranational fiscal policy in Europe is needed, and, if so, what responsibilities it should undertake. The literature on endogenous growth and the principle of subsidiarity suggest that such a policy should be limited to externalities or economies of scale not captured at the national level. These may include spending on research and development and transportation or knowledge networks, and harmonization of social security designed to enhance labor mobility. EU-wide stabilization policy or enhanced EU redistribution does not seem justified, however.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/133.

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Length: 31
Date of creation: 01 Jul 2000
Date of revision:
Handle: RePEc:imf:imfwpa:00/133

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Keywords: Economic growth; European Union; Taxation; fiscal policy; tax rates; fiscal policies; pension; pensions; government spending; fiscal federalism; public finance; public pension; funded pensions; pension benefits; fiscal stabilization; pension plans; benefit levels; health care; contribution rates; excessive deficits; pension reform; basic pension; size of government spending; tax policy; fiscal powers; retirement; government deficit; fiscal institutions; pension systems; pension spending; tax administration; tax structures; budgetary systems; fiscal redistribution; fiscal policy coordination; reduction in tax; fiscal flows; fiscal responsibilities; fiscal capacity; national accounts; basic benefits; pension fund; tax revenues; discretionary fiscal policies; fiscal constitutions; federal fiscal policy; fiscal benefits; fiscal position; pension fund reform; budgetary imbalances; fiscal spending; early retirement; pension programs; fiscal system; local expenditures; debt service; general budget; retirement plans;

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Cited by:
  1. Alberto Majocchi, 2008. "Theories of fiscal federalism and the European experience," ISAE Working Papers 100, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  2. Vratislav Iz√°k, 2011. "The Welfare State and Economic Growth," Prague Economic Papers, University of Economics, Prague, vol. 2011(4), pages 291-308.
  3. Fritz Breuss, 2001. "Towards a Political Economy of Zero Budgeting in Austria," Empirica, Springer, vol. 28(1), pages 41-67, March.
  4. Hefeker, Carsten, 2003. "Ressourcenverteilung in der EU : eine polit-ökonomische Perspektive," HWWA Discussion Papers 252, Hamburg Institute of International Economics (HWWA).

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