revised.pdf (991.85 kB)
Fiscal Policy in Models of Economic Growth
thesis
posted on 2011-11-25, 11:48 authored by Massimo AntoniniThis thesis analyses fiscal policy in four models of economic growth.
The first model is a variant of Jones [61]; overlapping generations are introduced
and it is shown that the allocation is dynamically inefficient. As
in Diamond [42], a debt financed transfer to current generations can lead
to a Pareto improvement; interestingly, the improvement is achieved not
by discouraging capital accumulation but through a reallocation of labour
between sectors. The second is a two-sector model of growth with public
capital. It is shown that perpetual fiscal deficit cannot be sustained.
The first best allocation is examined and for the log-utility case an explicit
solution can be found. Implementation of the optimal allocation is discussed.
The third model features disembodied technological progress as
in Solow [100], but it is assumed dependent on public investment. Conditions
under which perpetual deficits are sustainable are discussed. The
fourth and last model introduces excludable and congestible public services.
The optimal fiscal policy, including optimal user charges, is studied.
It is shown that in the long-run the optimal income tax is zero and
that revenues from user charges is more than sufficient to finance public
investment in infrastructures.
Funding
Faculty of Social Science, University of Leicester (Research scholarship)
History
Supervisor(s)
Fraser, CliveDate of award
2009-07-03Awarding institution
University of LeicesterQualification level
- Doctoral
Qualification name
- PhD
Language
enAdministrator link
Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC