Government Spending, Local Indeterminacy and Tax Structure
Bibliographic Data
| ID | 9726846 |
|---|---|
| Authors | Xavier Raurich (0000-0002-5210-1909, Universitat de Girona, corresponding author) |
| Year | 2003 |
| Volume | 70 |
| Issue | 280 |
| Pages | 639-653 |
| Publication date | 2003-11-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1046/j.0013-0427.2003.01111.x |
| OpenAlex | W2073689532 |
| Language | EN |
| References cited | 13 |
This paper develops an endogenous growth model where sustained growth is due to the introduction of a public input. Consumers derive utility from consumption, leisure and a public good. The public input and the public good are the flow of government expenditures. These expenditures are financed by means of income taxes. With these assumptions, it is shown that the dynamic equilibrium may exhibit local indeterminacy when the tax rate on the labour income is large. The tax structure that maximizes growth and the optimal tax structure are characterized and compared
Consumption (sociology) · Economics · Endogenous growth theory · Government spending · Human capital · Income tax · Indeterminacy (philosophy) · Indirect tax · Macroeconomics · Market economy · Microeconomics · Optimal tax · Public economics · Public spending · Tax rate · Tax reform · Welfare · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Politics, Economics, and Education Policy
| Citation velocity | historical |
|---|---|
| Highly cited | No |