Fiscal Policy and Long-Run Growth
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. 1996/119
Subject:
Expenditure Fiscal policy Human capital Income distribution Income inequality Labor National accounts
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
Pages:
36
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