PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2014 | 6 | nr 3 | 129--152
Tytuł artykułu

How Budget Deficit Impairs Long-Term Growth and Welfare under Perfect Capital Mobility

Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
This paper investigates the implications of the size of budget deficit in the open economy under perfect mobility of capital. For that purpose we construct a general equilibrium model with consumers maximizing the discounted utility of consumption, and firms maximizing profits. Government sets the size of the deficit relative to GDP and controls the structure of public debt. Using standard methods of optimal control theory we solve the model, i.e. we find explicit formulas for all trajectories and the level of welfare. Finally, we show that the higher the deficit-to-GDP ratio, the lower the welfare of consumers. Similarly, welfare increases with the share of foreign creditors in public debt. (original abstract)
Rocznik
Tom
6
Numer
Strony
129--152
Opis fizyczny
Twórcy
  • Poznań University of Economics, Poland
Bibliografia
  • [1] Acemoglu D., (2008), Introduction to Modern Economic Growth, Princeton University Press.
  • [2] Agenor P.-R., (2007), Fiscal policy and endogenous growth with public infrastructure, Oxford Economic Papers 60, 57-87.
  • [3] Arrow K. J., (1962), The Economic Implications of Learning by Doing, The Review of Economic Studies 29(3), 155-73.
  • [4] Barro R., Sala-i-Martin X., (2004), Economic Growth, Second Edition, MIT Press, Cambridge.
  • [5] Blume L., Simon C.P., (1994), Mathematics for Economists, W.W. Norton and Company, New York.
  • [6] Bukowski M., Kowal P., Lewandowski P., Zawistowski J., (2005), Struktura i poziom wydatków i dochodów sektora finansów publicznych a sytuacja na rynku pracy, NBP, Warszawa 2005.
  • [7] Burda M., Wyplosz Ch., (2001), Macroeconomics. A European Text, Oxford University Press.
  • [8] De Grauwe, P. (2012), Economics of Monetary Union , ninth edition, Oxford University Press.
  • [9] Dhont T., Heylen F., (2009), Employment and growth in Europe and the US - the role of fiscal policy composition, Oxford Economic Papers 61, 538-565.
  • [10] Futagami K., Iwaisako T., Ohdoi, R., (2008), Debt policy rule, productive government spending, and multiple growth paths, Macroeconomic Dynamics 12, 445-462.
  • [11] Ghosh S., Mourmouras I.A., (2004), Endogenous growth, welfare and budgetary regimes, Journal of Macroeconomics 26, 623-635.
  • [12] Greiner A., Semmler W., (2000), Endogenous growth, government debt and budgetary regimes, Journal of Macroeconomics 22(3), 363-384.
  • [13] Hayashi F., (1982), Tobin's Marginal q and Average q: A Neoclassical Interpretation, Econometrica, 50(1), 213-24.
  • [14] Konopczyński M., (2012), Wpływ opodatkowania na wzrost gospodarczy, Ekonomista 6, 689-712.
  • [15] Lee Y., Gordon R., (2005), Tax structure and economic growth, Journal of Public Economics 89(5-6), 1027-1043.
  • [16] Lucas R., (1988), On the Mechanics of Economic Development, Journal of Monetary Economics 22(1), 3-42.
  • [17] Nielsen S.B., Sorensen P.B., (1991), Capital Income Taxation in a Growing Open Economy, European Economic Review 35(1), 179-97.
  • [18] Razin A., Yuen Ch-W., (1994), Convergence in Growth Rates: The Role of Capital Mobility and International Taxation, NBER Working Paper No. 4214.
  • [19] Razin A., Yuen Ch-W., (1996), Capital Income Taxation and Long Run Growth: New Perspectives, NBER Working Paper No. 5028.
  • [20] Rebelo S., (1992), Growth in open economies, Carnegie-Rochester Conference Series on Public Policy 36, 5-46, Elsevier.
  • [21] Romer P.M., (1986), Increasing returns and long-run growth, Journal of Political Economy 94, 1002-37.
  • [22] Rzońca A., (2005), Finanse publiczne a wzrost gospodarki w długim okresie, Materiały i studia NBP, nr 198.
  • [23] Tokarski T., (2002), Polityka fiskalna a wzrost gospodarczy w warunkach stałych korzyści skali, Ekonomista 2.
  • [24] Turnovsky S.J., (2009), Capital Accumulation and Economic Growth in a Small Open Economy , Cambridge University Press.
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.ekon-element-000171285397

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.