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An Analysis of Fiscal Policy and Economics Growth: The Case of Transition Economies

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Author Info

  • Minsoo Lee

    (Economics Department, Commerce Division, Lincoln University)

  • MoonJoong Tcha

    (Department of Economics, The University of Western Australia)

Abstract

Based on a low level of elasticity of substitution between labour and capital in the transitional economies, this paper theoretically suggests how they should be able to reach a stable growth path after a period of rapid dynamic short-run movement. The paper places particular emphasis on the role of government fiscal policy in exploring this phenomenon.

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File URL: http://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2002/02-12.pdf
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Bibliographic Info

Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 02-12.

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Length: 16 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:uwa:wpaper:02-12

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Related research

Keywords: The transition economies; capital accumulation; budget deficit; tax rate;

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  1. Martin L. Weitzman, 1968. "Soviet Postwar Economic Growth and Capital Labor Substitution," Cowles Foundation Discussion Papers 256, Cowles Foundation for Research in Economics, Yale University.
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