This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Growth and Welfare Maximization in Models of Public Finance and Endogenous Growth

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Florian Misch
Norman Gemmell
Richard Kneller

Additional information is available for the following registered author(s):

Abstract

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.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nottingham.ac.uk/economics/credit/research/papers/CP0809.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number 08/09.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation:
Date of revision:
Handle: RePEc:not:notcre:08/09

Contact 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

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
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.:

  1. Turnovsky, Stephen J, 1996. "Fiscal Policy, Adjustment Costs, and Endogenous Growth," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 361-81, July. [Downloadable!] (restricted)
  2. Devarajan, Shantayanan & Swaroop, Vinaya & Heng-fu, Zou, 1996. "The composition of public expenditure and economic growth," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 313-344, April. [Downloadable!] (restricted)
  3. Pierre-Richard Agénor, 2008. "Fiscal policy and endogenous growth with public infrastructure," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 57-87, January. [Downloadable!] (restricted)
    Other versions:
  4. Goncalo Monteiro & Stephen J. Turnovsky, 2008. "The composition of productive government expenditure: consequences for economic growth and welfare," Indian Growth and Development Review, Emerald Group Publishing, vol. 1(1), pages 57-83, April. [Downloadable!] (restricted)
  5. Ingrid Ott & Stephen J. Turnovsky, 2006. "Excludable and Non-excludable Public Inputs: Consequences for Economic Growth," Economica, London School of Economics and Political Science, vol. 73(292), pages 725-748, November. [Downloadable!] (restricted)
    Other versions:
  6. Sugata Ghosh & Udayan Roy, 2004. "Fiscal policy, long-run growth, and welfare in a stock-flow model of public goods," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 742-756, August. [Downloadable!] (restricted)
  7. P R Agénor, 2005. "Health and Infrastructure in Models of Endogenous Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 62, Economics, The Univeristy of Manchester. [Downloadable!]
    Other versions:
  8. Park, Hyun & Philippopoulos, Apostolis, 2002. "Dynamics Of Taxes, Public Services, And Endogenous Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 6(02), pages 187-201, April. [Downloadable!]
  9. Lau, Sau-Him Paul, 1995. "Welfare-maximizing vs. growth-maximizing shares of government investment and consumption," Economics Letters, Elsevier, vol. 47(3-4), pages 351-359, March. [Downloadable!] (restricted)
  10. Tsoukis, Chris & Miller, Nigel J., 2003. "Public services and endogenous growth," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 297-307, April. [Downloadable!] (restricted)
  11. Futagami, Koichi & Morita, Yuichi & Shibata, Akihisa, 1993. " Dynamic Analysis of an Endogenous Growth Model with Public Capital," Scandinavian Journal of Economics, Blackwell Publishing, vol. 95(4), pages 607-25, December.
  12. Pierre Richard Agénor & Kyriakos C. Neanidis, 2006. "The Allocation of Public Expenditure and Economic Growth," The School of Economics Discussion Paper Series 0608, Economics, The University of Manchester. [Downloadable!]
  13. Baier, Scott L. & Glomm, Gerhard, 2001. "Long-run growth and welfare effects of public policies with distortionary taxation," Journal of Economic Dynamics and Control, Elsevier, vol. 25(12), pages 2007-2042, December. [Downloadable!] (restricted)
  14. 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)
Full references

Statistics
Access and download statistics

Did you know? RePEc and its associated services are free for contributors and users, and do not accept any advertising.

This page was last updated on 2009-11-19.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.