Fiscal Policy and Long-Run Growth

Author/Editor:

Vito Tanzi ; Howell H Zee

Publication Date:

October 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper discusses in a systematic and comprehensive way the existing literature on the relationship between the growth of countries’ economies and various public finance instruments, such as tax policy, expenditure policy, and overall budgetary policy, from the perspectives of allocative efficiency, macroeconomic stability, and income distribution. It reviews both the conceptual linkages between each of the instruments and growth and the empirical evidence on such relationships. It broadly concludes that fiscal policy could play a fundamental role in affecting the long-run growth performance of countries.

Series:

Working Paper No. 96/119

Subject:

Notes:

Also published in Staff Papers, Vol. 44, No. 2, June 1997.

English

Publication Date:

October 1, 1996

ISBN/ISSN:

9781451854121/1018-5941

Stock No:

WPIEA1191996

Format:

Paper

Pages:

36

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