The Impact of Fiscal Policy Variables on Output Growth
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Summary:
This paper surveys the theoretical and empirical literature on the relationship between taxation and public expenditure and economic growth. Particular attention is paid to the effect of taxation and government expenditure on the supply and productivity of labor and physical capital. Studies suggest that well-targeted government expenditures on health, education, and infrastructure should have a positive impact on growth. By contrast, the impact of taxation on the supplies of labor and capital, and on output growth, is more muted.
Series:
Working Paper No. 1998/001
Subject:
Expenditure Income Labor Labor supply National accounts Production Production growth
English
Publication Date:
January 1, 1998
ISBN/ISSN:
9781451841602/1018-5941
Stock No:
WPIEA0011998
Pages:
74
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