
Dynamic Fiscal Policies and Endogenous Growth
Dynamic Fiscal Policies and Endogenous Growth
- Hyun Park, Apostolis Philippopoulos
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제20권 제2호
- 등재여부 : KCI등재
- 2005.06
- 347 - 365 (19 pages)
This paper studies the dynamic properties of an endogenous growth model in which government consumption and production services are financed by capital taxes. I generalize the existence and its stability property of commitment Ramsey equilibria when government spending is productive and taxation is distortionary. I then establish a sufficient condition for uniqueness of the (positive) balanced growth path and determinacy of transitional dynamics. The same sufficient condition ensures growth convergence in Barro-type endogenous fiscal policies. This modeling approach can be used by a large class of endogenous growth models which allow for market imperfections and optimal policies. In particular, a few implications for main results are discussed on economic integration.
Ⅰ. Introduction
Ⅱ. The Economic Environment
Ⅲ. Dynamic Tax and Spending Policy
Ⅳ. Concluding Remarks