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http://hdl.handle.net/10419/48159
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| Title: | | Growth and welfare maximization in models of public finance and endogenous growth  |
| Authors: | | Misch, Florian Gemmell, Norman Kneller, Richard |
| Issue Date: | | 2011 |
| Series/Report no.: | | ZEW Discussion Papers 11-041 |
| Abstract: | | This paper evaluates the trade-off between growth and welfare maximization from two perspectives. Firstly, it synthesizes and extends endogenous growth models with public finance to compare growth and welfare maximizing tax rates. Secondly, it examines the distinct model outcomes in terms of their growth rates and welfare levels. This comparison highlights the range of trade-offs: the growth maximizing tax rate can be above, below, or equal to the welfare maximizing equivalent. We find however that even relatively large differences in growth and welfare maximizing tax rates translate into relatively small differences in growth rates, and, in some cases, welfare levels. |
| Subjects: | | 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-31910 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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