Government Spending, Taxes, and Economic Growth

Released on by Mr.Paul Cashin
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  • Government Spending, Taxes, and Economic Growth Book Detail

  • Author : Mr.Paul Cashin
  • Release Date : 1994-08-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 36
  • ISBN 13 : 1451951477
  • File Size : 37,37 MB
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Government Spending, Taxes, and Economic Growth by Mr.Paul Cashin PDF Summary

Book Description: This paper develops an endogenous growth model of the influence of public investment, public transfers, and distortionary taxation on the rate of economic growth. The growth-enhancing effects of investment in public capital and transfer payments are modeled, as is the growth-inhibiting influence of the levying of distortionary taxes which are used to fund such expenditure. The theoretical implications of the model are then tested with data from 23 developed countries between 1971 and 1988, and time series cross sectional results are obtained which support the proposed influence of the public finance variables on economic growth.

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