Fiscal policy and growth with complementarities and constraints on government

Arbeitspapier

This paper considers the implications of complementarity in private production and constraints on government for optimal fiscal policy. Using an endogenous growth model with public finance, it derives three central results which modify findings in the literature under standard assumptions. First, it shows that optimal public spending composition and taxation are interrelated so that first- and second-best fiscal policies differ. Second, it shows that the growth-maximizing fiscal policy is affected by preference parameters. Third, it shows that with budget rigidities and informational limitations, knowledge about the optimal fiscal policy parameter values is not necessary for growth-enhancing fiscal policy adjustments.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEW Discussion Papers ; No. 11-018

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policy ; Taxation and Subsidies: Efficiency; Optimal Taxation ; National Government Expenditures and Related Policies: General ; Economic Growth and Aggregate Productivity: General
• Thema: Imperfect Knowledge ; Economic Growth ; Productive Public Spending ; Optimal Fiscal Policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Misch, Florian ; Gemmell, Norman ; Kneller, Richard Anthony
• Ereignis: Veröffentlichung
• (wer): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (wo): Mannheim
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/44463
• URN: urn:nbn:de:bsz:180-madoc-31467
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ