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Testing a Simple Structural Model of Endogenous Growth

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  • Patrick Minford
  • David Meenagh
  • Jiang Wang

Abstract

The efect of taxation on growth is embodied in a model of a small open economy with endogenous growth. The structural model is estimated on post-war panel data for 76 countries and the bootstrap is used to produce the model’s sampling variation. Panel data regressions of growth on taxation do not reject this model but do reject a model with no tax effects.

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File URL: http://www.st-andrews.ac.uk/economics/CDMA/papers/cp0606.pdf
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Bibliographic Info

Paper provided by Centre for Dynamic Macroeconomic Analysis in its series CDMA Conference Paper Series with number 0606.

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Date of creation: Sep 2006
Date of revision:
Handle: RePEc:san:cdmacp:0606

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Postal: Department of Economics, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Fax: 01334 462444
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Web page: http://www.st-andrews.ac.uk/cdma
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Keywords: endogenous growth; taxation; business regulation; bootstrap; model validation.;

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References

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Cited by:
  1. Davidson, James & Meenagh, David & Minford, Patrick & Wickens, Michael, 2010. "Why crises happen - nonstationary macroeconomics," Cardiff Economics Working Papers E2010/13, Cardiff University, Cardiff Business School, Economics Section.
  2. Meenagh, David & Minford, Patrick & Nowell, Eric & Sofat, Prakriti, 2010. "Can a real business cycle model without price and wage stickiness explain UK real exchange rate behaviour?," Journal of International Money and Finance, Elsevier, vol. 29(6), pages 1131-1150, October.

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