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Central Government Budget Deficits: Their Effects on Real GNP and Other Variables - The AMRC Model

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This study develops a theoretical model to examine the impact of central government budget deficits on economic systems. The model addresses the issue from a supply-side perspective. It is shown that the budget deficit can itself he used by governments as a policy tool to influence the level of economic activity. The model also develops the concept of an optimum tax rate and an optimum budget deficit.

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  • Belton, Willie G. Belton & Cebula, Richard J. & Saltz, Ira S. & Uysal, Ali, 1994. "Central Government Budget Deficits: Their Effects on Real GNP and Other Variables - The AMRC Model," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 47(1), pages 7-33.
    • Handle: RePEc:ris:ecoint:0425
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