Dynamic Aspect of Growth and Fiscal Policy
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Krichel, T and Levine, P Dynamic Aspect of Growth and Fiscal Policy .
Full text not available from this repository.Abstract
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 | |||||||||
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| Divisions : | Surrey research (other units) | |||||||||
| Authors : |
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| 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 : | 23 Jan 2020 10:25 | |||||||||
| URI: | http://epubs.surrey.ac.uk/id/eprint/818163 |
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