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3 edition of Optimal government spending and taxation in endogenous growth models found in the catalog.

Optimal government spending and taxation in endogenous growth models

Giancarlo Corsetti

Optimal government spending and taxation in endogenous growth models

  • 62 Want to read
  • 40 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Government spending policy -- Mathematical models.,
  • Expenditures, Public -- Mathematical models.,
  • Budget -- Mathematical models.

  • Edition Notes

    StatementGiancarlo Corsetti, Nouriel Roubini.
    SeriesNBER working paper series -- working paper 5851, Working paper series (National Bureau of Economic Research) -- working paper no. 5851.
    ContributionsRoubini, Nouriel., National Bureau of Economic Research.
    The Physical Object
    Pagination38 p. ;
    Number of Pages38
    ID Numbers
    Open LibraryOL22410966M

    The Optimal Taxation of Asset Income when Government Consumption is Endogenous: Theory, Estimation and Welfare. Economic Inquiry, 55 (4), pp. – doi: /ecin 5. Endogenous Growth: One-Sector Models Backus D., P. Kehoe and T. Kehoe, , In Search of Scale E ects in Trade and Growth, Journal of Economic Theory, Barro R. J. and X. Sala-i-Martin, Chapter 4. Barro R. J., , Government Spending in a Simple Model of En-dogenous Growth, Journal of Political Economy, SS Human Capital and Public Policy Show all authors. Chaitali Sinha. Optimal taxation in models of endogenous technological change. Journal of Political Economy, (3), Government education spending and human capital formation. Economics Letters, 61(3), The optimal rate of income taxation. by Tyler Cowen February 6, at am in These new forces are strengthened by the endogenous response of top earners’ human capital to a change in the top tax rate. but I have it on good authority that the optimal tax rate is the one which leads to the highest long term growth (i.e. causes the.

    A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate. The term can be applied to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime.


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Optimal government spending and taxation in endogenous growth models by Giancarlo Corsetti Download PDF EPUB FB2

The authors study the problem of optimal taxation in three infinite-horizon, representative-agent endogenous growth models. The first model is a convex model in which physical and human capital. Optimal government spending and taxation in endogenous growth models. Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet Optimal government spending and taxation in endogenous growth models book Document Type: Book, Internet Resource: All Authors / Contributors: Giancarlo Corsetti; Nouriel Roubini; National Bureau of Economic Research.

Get this from a library. Optimal Government Spending and Taxation in Endgenous Growth Models. [Nouriel Roubini; Giancarlo Corsetti; National Bureau of Economic Research.;] -- This paper analyzes optimal spending, tax and financial policies in models of endogenous growth where public spending is productive.

We extend previous work in four directions. Downloadable. This paper analyzes optimal spending, tax and financial policies in models of endogenous growth where public spending is productive. We extend previous work in four directions.

First, we analyze optimal policies when the government is allowed to borrow and lend, rather than being restricted to run a balanced budget in every period. Downloadable. In an endogenous growth model with public consumption and public investment, we explore the time-consistent optimal choice for two policy instruments: an income tax rate and the split of government spending between consumption and investment.

We show that under the time-consistent, Markov policy, the economy lacks any transitional dynamics and also that there is local and global. 1. Introduction. Since the publication of the journal article by Barro (), growth effects of public spending have been one of the popular topics in economic research.

1 Existing endogenous growth models specify public spending either as being productive or as consumptive. While productive public spending is formulated to externally enhance production, consumptive public spending is.

Optimal Taxation, Economic Growth and Income Inequality in the United States the author (the Scully model), the optimal, or (–) growth-maxi(–) mizing, tax rate 40% Total Government Expenditures as Percent of for the United 35% Gross Domestic Product States over the – 30% period was an 25% estimated Transfers.

Two models have been developed that link government spending and taxation to economic growth. This paper uses these models to provide estimates of the growth-maximizing tax rate. We show that in models in which labor services are supplied jointly with human capital, the Chamley and Judd result on zero capital income taxation in the limit extends to labor taxes as long as accumulation technologies are constant returns to scale.

Barro, R.J. () Government spending in a simple model of endogenous growth. Journal of Political Economy 98(5), Part 2: S — S Google Scholar. Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces.

Endogenous growth theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic theory also focuses on positive externalities and spillover Optimal government spending and taxation in endogenous growth models book of a knowledge-based economy which will lead to economic.

Taxation and Development the efficiency losses imposed by taxes and even raise the growth rate in endogenous-growth models, as in Barro and Sala-i-Martin (). Tax rev- and empirical issues in the political economics of public finance and government spending.

We explore how tax evasion by firms affects the growth- and welfare-maximizing rates of corporate income tax (CIT) in an endogenous growth model with productive public service. We show Optimal government spending and taxation in endogenous growth models book the negative effect of CIT on growth is mitigated in the presence of tax evasion.

This increases the benefit of raising the CIT rate for public service provision. In 16 L.E. Jones, R.E. Manuelli / Journal of Economic Dynamics and Control 21 () particular, this implies Optimal government spending and taxation in endogenous growth models book any empirical results relating government spending to growth may say more about the weakness of the structure for local govern- ments in LDC's than about the level of taxation or spending overall in the countries.

The initial reason for departing from this assumption (Romer, ) is the incompatibility of neoclassical growth models with a production-function technology (in Solow’s model and in optimal growth models) and some stylized facts. In particular, long run sustained growth of.

Lucas () examines the growth effects of Ramsey optimal taxation in a model of endogenous growth driven by a human capital externality.

He uses an approximation to charac- terize the steady-state behavior of the optimal tax policy conditional on an exogenously specified level of. Barro, R. Government spending in a simple model of endogenous growth. Journal of Political Economy 95 (5), Barro, R.

Economic growth in a cross-section of countries. Quarterly Journal of Economics (2), Baumol, W. Macroeconomics of unbalanced economic growth: the anatomy of the urban crisis. Tax Evasion and Public Expenditures on Tax Collection Services in an Endogenous Growth Model This paper analyzes the relationship between tax evasion and the two main policy instruments affecting evasion rates, namely, the announced tax rate and the share.

Optimal taxation and spending in general competitive growth models. Journal of Public Economics, 71, 1– Korkmaz, S. Evaluating the relationship between public expenditures and economic growth for Turkey. Actual Problems of Economics, – Kumar, S.

Further evidence on public spending and economic growth in East Asian. Viewed from an endogenous growth perspective the link between taxation and growth seems self-evident.

Corporate taxation affects the return to innovation and hence must affect the optimal amount of research and development. Personal income taxation reduces the returns to education so must reduce the accumulation of human capital.

Time Series Tests of Endogenous Growth Models. Quarterly Journal of Economics, MayVol.pp. View the paper in PDF file. According to endogenous growth theory, permanent changes in certain policy variables have permanent effects on the rate of economic growth.

Empirically, however, U.S. growth rates exhibit no large. In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure (spending) to influence a country's economy. The use of government revenues and expenditures to influence macroeconomic variables developed as a result of the Great Depression, when the previous laissez-faire approach to economic management became unpopular.

paper with the development of endogenous growth models, dealt with the influence of public investment, public transfers and dictionary taxation on the rate of economic growth of 23 developed countries for the time period of to and time series cross sectional results were obtained.

of government spending and on the concentration of housing wealth. On the one hand, taxes in big cities relative to those in small cities decrease as government spending increases. Higher government spending increases all taxes, but it is more e cient to generate the revenue by attracting more workers to the big, more productive city.

On the other hand, the defining feature of the endogenous growth models is treating technology as endogenous variable and search for the factors affect it (Chude and Chude ).

They assume that government expenditure on human capital and on research. Fiscal Policy and Endogenous Growth (pg. ) Convergence in Exogenous and Endogenous AK Growth Models (pg. ) Investment in Human Capital and Economic Growth (pg.

) The Extended Solow Model and the Share of Spending on Educationand Training (pg. ) The Balanced Growth Path in the Extended Solow Model (pg.

We will analyze three growth models: the optimal growth model, an endogenous growth model, and the stochastic growth model (a model of business cycles). Then we will explore the fiscal side of the economy, looking at taxation, government spending, and deficits.

Among the concepts we will examine are Ricardian equivalence and Social Security. "Optimal Government Spending and Taxation in Endogenous Growth Models," (with Giancarlo Corsetti), NBER Working Paper No.

December "Economic and Political Determinants of Inflation Rates: An Empirical Investigation Using a Panel Data Set,". In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using Nigeria as a case study.

We explore the linkages between availability of higher resource revenue and lower taxation effort of other revenue categories and the effects of these on growth. Ordinary least square (OLS) estimation technique is employed in estimating the specified model. A Theory of Economic Growth: Dynamics and Policy in Overlapping Generations.

public debt and public spending, optimal second best taxation rules for financing public spending, and pensions policy. It also covers restricted in its actions than one would suppose from analysing models where the government must rely on only one tax instrument.

Optimal Redistributive Taxation Matti Tuomala Tax systems raise large amounts of revenue for funding public sector's activities, and tax/transfer policy, together with public provision of education, health care, and social services, play a crucial role in treating the symptoms and the causes of poverty.

"Progressive Taxation, Endogenous Growth, and Macroeconomic (In)stability," with Shu-Hua Chen, Bulletin of Economic Research, Vol. 68, Issue S1, December"Dynamic Income Taxation without Commitment: Comparing Alternative Tax Systems, " with Alan Krause, Economic Modelling, Vol.

47, June   This paper presents empirical analysis of the relationship between sectoral public expenditure and economic growth in Tanzania.

It uses time series data spanning over the period from - In this paper real gross domestic product (GDP) is used as a proxy of economic growth.

The investigation focuses on analysis of relationship between public expenditure on education, agriculture. The B.E. Journal of Macroeconomics. Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui. Lectures on Public Economics, McGraw-Hill, London. Barro, R., Government spending in a simple model of endogenous growth.

Journal of Political Economy 98 (1), s– R. Kneller et al. / Journal of Public Economics 74 () – Barro, R., Sala-i-Martin, X., Public finance in models of economic growth. Solving the Growth Model. Dynamic Programming and the Growth Model. Computational Implementations.

Policy in the Growth Model. Taxes and Spending, TDCE’s. Optimal Policy and Ramsey Problems. Adding Growth. Exogenous Growth Under Certainty. Endogenous Growth Under Certainty. Adding ‘Wiggles,’ Stochastic Models General. A-D with. As Disney () summarized, taxes on factors can affect the optimal level of the capital stock, although not its growth rate in equilibrium in the standard model (Blanchard and Fischer ()).

However, in an endogenous growth model, the nature of public spending matters: expenditure. The COVID crisis has led to a series of unprecedented fiscal interventions by governments worldwide (Baldwin and Weder di Mauro ). Even excluding conditional expenditures—such as loan guarantees, which may or may not be drawn upon—this additional public sector spending will nevertheless increase deficits by between a few to as much as 20 percentage points of GDP (Figure 1).1 Hence.

The impact of fiscal policy on economic growth. A case Study of Pakistan () - Ruman Khan - Term Paper - Economy - Theory of Competition, Competition Policy - Publish your bachelor's or master's thesis, dissertation, term paper or essay.

Part I: Putting the Growth Model to Work: (approximately 4 weeks) A. The Neoclassical Growth Model: Aggregation and the Competitive Interpretation, the Time Series generated by the Solution B. The Effects of Taxes in the Model C. Optimal Taxation in the Exogenous Growth Model D.

The Reasons for Spending and Optimal Spending (time permitting). The interplay between growth and public debt is addressed considering pdf Barro‐type () endogenous pdf model where public spendings are financed through taxes on income and public debt.

The government has a target level of public debt relative to GDP, and the long‐run debt‐to‐GDP ratio is used as a policy parameter."The Timing of Government Spending in a Dynamic Model of Imperfect Competition", Yale Economic Growth Center Discussion Paper, August Money and Inflation "Extensive Margins and the Demand for Money at Low Interest Rates" (with Casey Mulligan), Journal of Political Economy, vol5,October   Today most of the ebook raise lot of debt from various sources and somewhere it is necessary to compete with other nation.

As we know, we measure country's performance through GDP. GDP which directly relevant to production activities. GDP=Prod.