Author: Wayne Robert HickenbottomPublisher:
ISBN:
Category :
Languages : en
Pages : 340
Book Description
Dynamic Fiscal Policy with Endogenous Human Capital
Author: Wayne Robert HickenbottomPublisher:
ISBN:
Category :
Languages : en
Pages : 340
Book Description
Dynamic fiscal policy with endogenous human capital
Author: Wayne R. HickenbottomPublisher:
ISBN:
Category :
Languages : en
Pages : 160
Book Description
Fiscal Policy in an Endogenous Growth Model with Human Capital Accumulation
Author: Salvador OrtigueiraPublisher:
ISBN:
Category : Economic development
Languages : en
Pages : 44
Book Description
The Dynamic Effects of Taxes and Government Spending in a Calibrated Canadian Endogenous Growth Model
Author: Jing XuPublisher:
ISBN:
Category : Government spending policy
Languages : en
Pages : 22
Book Description
Taxation and Endogenous Growth in Open Economies
Author: Mr.Gian Milesi-FerrettiPublisher: International Monetary Fund
ISBN: 145184994X
Category : Business & Economics
Languages : en
Pages : 37
Book Description
This paper examines the effects of taxation of human capital, physical capital and foreign assets in a multi-sector model of endogenous growth. It is shown that in general the growth rate is reduced by taxes on capital and labor (human capital) income. When the government faces no borrowing constraints and is able to commit to a given set of present and future taxes, it is shown that the optimal tax plan involves high taxation of both capital and labor in the short run. This allows the government to accumulate sufficient assets to finance spending without any recourse to distortionary taxation in the long run. When restrictions to government borrowing and lending are imposed, the model implies that human and physical capital should be taxed similarly.
Tax Policy Implications in Endogenous Growth Models
Author: Bin XuPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 46
Book Description
This paper surveys the tax policy implications in various endogenous growth models. The focus is on the long-run growth effects of income, consumption, and investment taxation in models whose engine of growth is the accumulation of human capital, technological innovation, and/or public infrastructure. The results depend on model specifications. This paper also reviews quantitative results from cross-country regressions and simulations, and indicates some statistical and methodological problems to which they are subject. Tax policy implications in endogenous growth models both with tax policy endogenously determined by a political process and with international capital mobility are also discussed.
The Design of Fiscal Reform Packages
Author: Andrew HodgePublisher: International Monetary Fund
ISBN: 1475529295
Category : Business & Economics
Languages : en
Pages : 50
Book Description
This paper studies the impact on growth, welfare, and government debt of fiscal reform packages in a theoretical model drawing together three key features of the endogenous growth literature: (i) investment in technology (in the form of human capital) offsets diminishing marginal productivity of private capital, allowing for perpetual growth in output per capita; (ii) changes in investment behavior because of cuts to distortionary tax rates impact long-run growth; and (iii) public capital has a role influencing total factor productivity and growth. A quantitative simulation using reasonable parameter values suggests that modest capital and/or labor income tax cuts and public investment increases have significant positive effects on consumer welfare but small effects on per capita income growth, where fiscal costs are offset by reductions in unproductive government spending. Capital income tax cuts and public investment increases continue to boost welfare when offset by consumption tax rises (rather than spending cuts), although the welfare benefits of modest labor income tax cuts are outweighed by the costs of a compensating consumption tax increase.
Fiscal Policy, Public Expenditure Composition, and Growth
Author: Willi SemmlerPublisher: World Bank Publications
ISBN:
Category : Access to Finance
Languages : en
Pages : 36
Book Description
Abstract: This paper responds to the development policy debate involving the World Bank and the IMF on the use of fiscal policy not only for economic stabilization but also to promote economic growth and increase per capita income. A key issue in this debate relates to the effect of the composition of public expenditure on economic growth. Policy makers and some researchers have argued that expenditure on growth-enhancing functions could enhance future revenue and justify the provision of "fiscal space" in the budget. But there are no simple ways to identify the growth-maximizing composition of public expenditure. The current paper lays out a research strategy to explore the effects of fiscal policy, including the composition of public expenditure, on economic growth, using a time series approach. Based on the modeling strategy of Greiner, Semmler and Gong (2005) we develop a general model that features a government that undertakes public expenditure on (a) education and health facilities which enhance human capital, (b) public infrastructure such as roads and bridges necessary for market activity, (c) public administration to support government functions, (d) transfers and public consumption facilities, and (e) debt service. The proposed model is numerically solved, calibrated and the impact of the composition of public expenditure on the long-run per capita income explored for low-, lower-middle- and upper-middle-income countries. Policy implications and practical policy rules are spelled out, the extension to an estimable model indicated, a debt sustainability test proposed, and the out-of-steady-state dynamics studied.
Dynamic Fiscal Policy
Author: Alan J. AuerbachThe Uzawa-Lucas Endogenous Growth Model
Author: Paolo MattanaPublisher: Routledge
ISBN: 1351144944
Category : Business & Economics
Languages : en
Pages : 183
Book Description
Using state of the art mathematical techniques this book provides a complete characterization of the Uzawa-Lucas growth model. In his path-breaking contribution on the 'Mechanics of Economic Growth' Lucas suggested that human capital is the key variable through which technical change is most likely to occur and (by taking some initial intuitions of Uzawa a step further) proposed a two-sector capital accumulation growth model where human capital is allowed to enter a neo-classical-style production structure in multiplicative terms. In this book Paolo Mattana fully explores the dynamic possibilities of the model from both the market and the centralized perspective. A critical evaluation of the inefficiency in the market economy is also provided.