We present a theory of endogenous fiscal policy and growth. Fiscal policy — debt, income tax, spending on local public goods and public investment — is determined through legislative bargaining. Economic growth depends directly on public investment, private investment in human capital and, via learning-by-doing, labor supply. The model predicts that the economy converges to a balanced growth pa...

Fiscal Policy and Educational Attainment in the United States A Generational Accounting Perspective In this paper, we investigate the consequences of the rise in educational attainment on the US generational accounts. We build on the 1995 accounts of Gokhale et al. (1999) and disaggregate them per schooling level. We show that low skill newborns are characterized by a negative generational acco...

The paper presents a model of fiscal and monetary policy that evaluates the tradeoff be­ tween higher distortionary labor taxation and higher ination in the resolution of fiscal crises. In the model government debt is domestically held and nominal. Data are presented to show that such debt is now at least as important as external government debt in many key emerg­ ing markets, and that it is a...

To finance basic pro-poor services, the Government of Ghana must mobilize more public revenue. But tax reform has been highly controversial in Ghana. An attempt to introduce VAT in 1995 failed after widespread protests. Although a second attempt to introduce VAT in 1998 succeeded, strong resistance to tax reform remains, and the total tax base remains narrow and over-dependent on petroleum taxe...

To finance basic pro-poor services, the Government of Ghana must mobilize more public revenue. But tax reform has been highly controversial in Ghana. An attempt to introduce VAT in 1995 failed after widespread protests. Although a second attempt to introduce VAT in 1998 succeeded, strong resistance to tax reform remains, and the total tax base remains narrow and over-dependent on petroleum taxe...

We study the implications of fiscal policy behavior for sovereign risk in a framework that develops a country’s fiscal limit, the point at which for economic or political reasons taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the economic environment—expected fiscal policy, the distribution of exogenous disturbances, and private agents’ behavior—into...

Based on a comprehensive investigation on Chinese Stock Market and macroeconomic policies, analyzing samples of the SSE Composite Index and relevant monetary and fiscal policies during the period from January 2000 to June 2008, this paper uses GARCH-type models and EVIEWS5.1 software to study effects of changes in macroeconomic policy on conditional volatility of Chinese Stock Market and analyz...

Is there a role for anonymous markets in which trades cannot be monitored by the government? We study an economy in which agents have private information and a benevolent government controls redistributive tax policy. While unrestricted access to anonymous markets reduces the set of policy instruments available to the government in general, it also limits the scope of inefficient redistributive...

The article explores the subject of diversification local tax policy and its fiscal consequences in Poland 2007–2019. It focuses on various types municipalities governance tools they use (establishing rates, applying exemptions non-statutory reliefs). analysed taxes include immovable property (property tax, agricultural tax) movable ones (tax means transport). Theoretical empirical analyses con...

In the decades before the 1997–1998 Asian financial crisis, South Korea and Thailand experienced sustained economic growth attributable to investment growth and productivity gains. The investment underlying this economic expansion was financed by relatively high levels of private savings as well as by foreign borrowing. During the crisis, international creditors lost confidence in these countri...