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dc.contributor.authorZak, Paul J.en_US
dc.contributor.authorGhate, Chetanen_US
dc.date.accessioned2009-01-28T15:39:05Z-
dc.date.available2009-01-28T15:39:05Z-
dc.date.issued2002en_US
dc.identifier.urihttp://hdl.handle.net/10419/18056-
dc.description.abstractIs it politically feasible for governments to engineer endogenous growth? This paper illustrates two reasonable political decision mechanisms by which fiscal policy generates endogenous growth with a single accumulable factor, under a constant returns to scale production technology, and without production externalities. In the first mechanism, optimal policies are chosen by the government to maximize constituent support by raising aggregate income. In the second mechanism, optimal policies are determined in a voting equilibrium where agents are concerned only with their own incomes. We demonstrate that policies that target aggregates generate balanced growth and are Pareto optimal. Policies chosen by the median voter also produce balanced growth, but result in public investment 50% below the socially optimal level.en_US
dc.language.isoengen_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDIW-Diskussionspapiere 320en_US
dc.subject.jelP16en_US
dc.subject.jelO40en_US
dc.subject.jelE62en_US
dc.subject.ddc330en_US
dc.subject.keywordPublic Investmenten_US
dc.subject.keywordPositive Political Economyen_US
dc.subject.keywordMedian Voter Theoremen_US
dc.subject.keywordEndogenous Growthen_US
dc.subject.stwNeue Wachstumstheorieen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwÖffentliche Investitionen_US
dc.subject.stwWachstumspolitiken_US
dc.subject.stwMedian Voteren_US
dc.subject.stwPareto-Optimumen_US
dc.subject.stwTheorieen_US
dc.titleThe politics of endogenous growthen_US
dc.typeWorking Paperen_US
dc.identifier.ppn367448025en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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