Fiscal Policy and Growth in the Context of European Integration
July 1, 2000
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Summary
The paper considers the issue of whether a supranational fiscal policy in Europe is needed, and, if so, what responsibilities it should undertake. The literature on endogenous growth and the principle of subsidiarity suggest that such a policy should be limited to externalities or economies of scale not captured at the national level. These may include spending on research and development and transportation or knowledge networks, and harmonization of social security designed to enhance labor mobility. EU-wide stabilization policy or enhanced EU redistribution does not seem justified, however.
Subject: Expenditure, Fiscal policy, Income, Labor, National accounts, Pensions
Keywords: EU budget, EU country, EU financing, EU fiscal policy, EU government, EU government relationship, EU institution, Europe, European Union, fiscal federalism, government program, Income, Pensions, social security, tax competition, WP
Pages:
31
Volume:
2000
DOI:
Issue:
133
Series:
Working Paper No. 2000/133
Stock No:
WPIEA1332000
ISBN:
9781451855487
ISSN:
1018-5941
