Fiscal and Monetary Policy in an Endogenous Growth Model with Public Capital
Bibliographic Data
| ID | 24050929 |
|---|---|
| Authors | Toshiki Tamai (0000-0001-7524-5545, Nagoya University, corresponding author) |
| Year | 2008 |
| Volume | 64 |
| Issue | 4 |
| Pages | 403-421 |
| Publication date | 2008-01-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | FinanzArchiv (JOURNAL) |
| Journal identifiers | ISSN: 0015-2218 • E-ISSN: 1614-0974 |
| Publisher | Mohr Siebeck (PUBLISHER) |
| DOI | 10.1628/001522108x397606 |
| OpenAlex | W1975983791 |
| Language | EN |
| References cited | 3 |
This paper develops an endogenous growth model in which the government finances its public investment using both income taxation and seigniorage. Arguments presented in this paper show that public investment financed by seigniorage gradually pulls up the growth rate of consumption and overshoots the inflation rate. Furthermore, we show that public investment financed by an income tax brings about an overshooting of the inflation rate and a simultaneous undershooting of the growth rate of consumption. These dynamic effects influence welfare dynamics. Taking account of transitional effects, we derive the welfare effects of fiscal and monetary policy.
Capital (architecture) · Capital accumulation · Economics · Endogenous growth theory · Fiscal policy · Growth model · Human capital · Keynesian economics · Macroeconomics · Market economy · Monetary economics · Monetary policy · Public capital · Public investment · Economic Growth and Productivity · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth
| Highly cited | No |
|---|