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http://hdl.handle.net/10419/44463
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| Title: | | Fiscal policy and growth with complementarities and constraints on government  |
| Authors: | | Misch, Florian Gemmell, Norman Kneller, Richard Anthony |
| Issue Date: | | 2011 |
| Series/Report no.: | | ZEW Discussion Papers 11-018 |
| Abstract: | | 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. |
| Subjects: | | Imperfect Knowledge Economic Growth Productive Public Spending Optimal Fiscal Policy |
| JEL: | | E62 H21 H50 O40 |
| Persistent Identifier of the first edition: | | urn:nbn:de:bsz:180-madoc-31467 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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