University of Surrey

Test tubes in the lab Research in the ATI Dance Research

Dynamic Aspect of Growth and Fiscal Policy

Krichel, T and Levine, P Dynamic Aspect of Growth and Fiscal Policy .

Full text not available from this repository.


We develop an endogenous growth model driven by externalities of both private capital and public infrastructure. The government levies distortionary taxation to finance a publicly provided consumption good and public infrastructure. Firms face adjustment costs. We first study the steady state, focusing in detail on the non-Ricardian aspects of the model. We then examine the optimal and time-consistent policies in a linear-quadratic approximation of the model. Although the time consistent equilibrium is also sub-optimal in terms of steady-state welfare, it does yield higher growth, through an accumulation of assets by the state and a cut of government consumption.

Item Type: Other
Authors :
Uncontrolled Keywords : C61, E21, E23, E62, O41, endogenous growth, fiscal policy, time inconsistency.
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:14
Last Modified : 17 May 2017 14:33

Actions (login required)

View Item View Item


Downloads per month over past year

Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800