Fiscal policy, growth, and macroeconomic performance in a small open economy

• 成果类型: Article
• 署名作者: Turnovsky, SJ
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(95)01388-1
• 发表日期: 1996
• 页码: 41-66
• 关键词: growth; welfare; taxes; Government expenditure

摘要

This paper develops an endogenous growth model of a small open economy. Domestic capital accumulation involves convex costs of adjustment, a consequence of which is that no steady-state growth path may exist. The equilibrium growth rates of domestic capital and consumption are determined largely independently. The former is determined by production conditions, the latter is determined primarily by tastes. Various fiscal issues are discussed, beginning with the effects of taxes on growth and welfare. The latter part of the paper discusses optimal fiscal policy in a situation where the tax revenues are used to finance utility-augmenting government expenditure.