Fiscal federalism and economic growth

Arbeitspapier

This paper uses an endogenous-growth model with overlapping generations to explore the connection between fiscal federalism and economic growth. The analysis shows that federalism, which allows public-good levels to be tailored to suit the differing demands of young and old consumers, who live in different jurisdictions, increases the incentive to save. This stronger incentive in turn leads to an increase in investment in human capital, and a byproduct of this higher investment is faster economic growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1601

Classification and Topics

• Classification: Wirtschaft ; State and Local Government; Intergovernmental Relations: General ; Structure and Scope of Government: General
• Subject: Finanzföderalismus ; Wirtschaftswachstum ; Neue Wachstumstheorie ; Sparen ; Bildungsinvestition ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brueckner, Jan Keith
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/19065
• Last update: 10.03.2025, 11:42 AM CET