Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65456
Authors: 
Misch, Florian
Gemmell, Norman
Kneller, Richard
Year of Publication: 
2008
Series/Report no.: 
CREDIT Research Paper 08/10
Abstract: 
This paper develops endogenous growth models in which the government uses income taxation to finance different types of public services, public investment, or both. The paper then assesses the merits of business perceptions of alternative fiscalpolicy related growth constraints as guides for imperfectly informed governments. The models demonstrate that business perceptions may be misleading except when firms compare different types of public services or different types of public capital. It is also shown that the theoretical predictions regarding how firms most likely rank constraints correspond fairly well to the ranking of constraints by firms in the World Bank's Enterprise Surveys.
Subjects: 
Economic Growth
Productive Public Spending
Imperfectly Informed Governments
Optimal Fiscal Policy
Constraints to Growth
Investment Climate Assessments
JEL: 
E62
H21
H50
O40
Document Type: 
Working Paper

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