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Growth and Welfare Maximization in Models of Public Finance and Endogenous Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Florian Misch
Norman Gemmell
Richard Kneller
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This paper evaluates the trade-off between growth and welfare maximization from two perspectives. Firstly, it synthesizes and extends endogenous growth models with public finance to compare the growth and welfare maximizing tax rates. Secondly, it examines the distinct model outcomes in terms of the growth rates and welfare levels. This comparison highlights the range of trade-offs: the growth maximizing tax rate can lie above, below, or on the welfare maximizing equivalent. We find however that even relatively large differences in growth and welfare maximizing tax rates translate into relatively small differences in growth rates, and, in some cases, welfare levels.
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Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number
08/09.
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Handle: RePEc:not:notcre:08/09Contact details of provider: Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD Phone: (44) 0115 951 5620 Fax: (0115) 951 4159 Web page: http://www.nottingham.ac.uk/economics/ More information through EDIRC
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Keywords: Economic Growth ; Productive Public Spending ; Optimal Fiscal Policy ; References listed on IDEAS 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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[Downloadable!]
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Futagami, Koichi & Morita, Yuichi & Shibata, Akihisa, 1993.
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[Downloadable!]
Baier, Scott L. & Glomm, Gerhard, 2001.
"Long-run growth and welfare effects of public policies with distortionary taxation ,"
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Alfred Greiner & Horst Hanusch, 1998.
"Growth and Welfare Effects of Fiscal Policy in an Endogenous Growth Model with Public Investment ,"
International Tax and Public Finance ,
Springer, vol. 5(3), pages 249-261, July.
[Downloadable!] (restricted)
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