ECONOMIC GROWTH AND THE EFFECTS OF FISCAL POLICY

    Authors

    R. H. Day;C. Y. Yang

    Comments

    Authors: contact us about adding a copy of your work at STARS@ucf.edu

    Abbreviated Journal Title

    Metroeconomica

    Keywords

    Economics

    Abstract

    The macroeconomic effects of fiscal policy are analyzed using a Keynesian growth model. Comparative static analysis shows that the long-run effects of an increase in public spending and a decrease in taxation on economic growth and government budget balance depend on the relative size of marginal propensity to consume and invest and could be positive under certain conditions. Empirical estimates show that consumption and production structure have changed significantly from 1930s to 2007; both positive and negative effects on growth and budget balance of the same fiscal policy are found in different time periods.

    Journal Title

    Metroeconomica

    Volume

    62

    Issue/Number

    1

    Publication Date

    1-1-2011

    Document Type

    Article

    Language

    English

    First Page

    218

    Last Page

    234

    WOS Identifier

    WOS:000286061500010

    ISSN

    0026-1386

    Share

    COinS