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The Impact of Fiscal Policy Variableson Output Growth

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  • Philip R. Gerson

Abstract

This paper surveys the theoretical and empirical literature on the relationship between taxation and public expenditure and economic growth. Particular attention is paid to the effect of taxation and government expenditure on the supply and productivity of labor and physical capital. Studies suggest that well-targeted government expenditures on health, education, and infrastructure should have a positive impact on growth. By contrast, the impact of taxation on the supplies of labor and capital, and on output growth, is more muted.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 98/1.

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Length: 74
Date of creation: 01 Jan 1998
Date of revision:
Handle: RePEc:imf:imfwpa:98/1

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Citations

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Cited by:
  1. Vratislav Izák, 2011. "Government Expenditures and Taxes Influence on the Economic Growth (Empirical Analysis)," Politická ekonomie, University of Economics, Prague, vol. 2011(2), pages 147-163.
  2. Vratislav Izák, 2011. "The Welfare State and Economic Growth," Prague Economic Papers, University of Economics, Prague, vol. 2011(4), pages 291-308.
  3. Benedict J. Clements & Sanjeev Gupta & Emanuele Baldacci & Carlos Mulas-Granados, 2002. "Expenditure Composition, Fiscal Adjustment, and Growth in Low-Income Countries," IMF Working Papers 02/77, International Monetary Fund.
  4. Bertarelli Silvia, 2006. "Capitale pubblico e crescita: una sintesi critica," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
  5. Joseph Ntamatungiro, 2004. "Fiscal Sustainability in Heavily Indebted Countries Dependenton Nonrenewable Resources," IMF Working Papers 04/30, International Monetary Fund.
  6. Steven P. Cassou & Kevin J. Lansing, 2006. "Tax Reform with Useful Public Expenditures," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(4), pages 631-676, October.
  7. Gupta, Sanjeev & Clements, Benedict & Baldacci, Emanuele & Mulas-Granados, Carlos, 2005. "Fiscal policy, expenditure composition, and growth in low-income countries," Journal of International Money and Finance, Elsevier, vol. 24(3), pages 441-463, April.
  8. Jorge Martínez-Vázquez & Robert M. McNab, . "Fiscal Decentralization, Macrostability And Growth," Working Papers 11-03 Classification-JEL , Instituto de Estudios Fiscales.
  9. Nicholas Staines, 2004. "Economic Performance Over the Conflict Cycle," IMF Working Papers 04/95, International Monetary Fund.
  10. de Castro Alxandre Samy & Goldin, Ian & Pereira da Silva, Luiz A., 2002. "Relative returns to policy reform - evidence from controlled cross-country regressions," Policy Research Working Paper Series 2898, The World Bank.
  11. Mahdavi, Saeid, 2008. "The level and composition of tax revenue in developing countries: Evidence from unbalanced panel data," International Review of Economics & Finance, Elsevier, vol. 17(4), pages 607-617, October.
  12. Milad Zarin-Nejadan, 2011. "Government and Growth," IRENE Working Papers 11-02, IRENE Institute of Economic Research.
  13. Carlos Mulas-Granados, 2003. "The Trade-Off between Growth & Equality and the Economic Impact of Alternative Fiscal Adjustment Strategies in the EU," European Economy Group Working Papers 20, European Economy Group.
  14. Donath, Liliana & Milos, Marius Cristian & Milos, Laura Raisa, 2008. "Public investment and economic growth in the European Union member states," MPRA Paper 12954, University Library of Munich, Germany.
  15. Tudor Ion, 2013. "The Implications Of The Fiscal Policies In The Macroeconomic Adjustment," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 68-72, August.
  16. Anca-Stefania SAVA, 2011. "Romanian Public Expenditures Policy during the Economic Crisis," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 27-30.

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