Optimal tax, debt, and expenditure policies in a growing economy

• 成果类型: Article
• 署名作者: Turnovsky, SJ
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(95)01519-1
• 发表日期: 1996
• 页码: 21-44
• 关键词: growth; welfare; taxes; Government expenditure

摘要

This paper employs an endogenous growth model to analyze the role of a consumption tax in enhancing growth and welfare. Provided government expenditure impacts directly on the decisions of private agents, two fiscal instruments are necessary to replicate the first best optimum. The tradeoff between consumption and income taxes to achieve this outcome is discussed and shown to depend upon the degree of congestion associated with the public good and the level of government expenditure relative to its social optimum. In general, the analysis suggests a potentially important role for a consumption tax as part of an overall optimal fiscal package.