Title

Economic Growth And The Effects Of Fiscal Policy

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. © 2010 Blackwell Publishing Ltd.

Publication Date

2-1-2011

Publication Title

Metroeconomica

Volume

62

Issue

1

Number of Pages

218-234

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.1467-999X.2010.04108.x

Socpus ID

79959590030 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/79959590030

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