The Impact of Fiscal Policy Variables on Output Growth

Author/Editor:

Philip R. Gerson

Publication Date:

January 1, 1998

Electronic Access:

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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 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. 98/1

Subject:

English

Publication Date:

January 1, 1998

ISBN/ISSN:

9781451841602/1018-5941

Stock No:

WPIEA0011998

Format:

Paper

Pages:

74

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