Fiscal Policy and Productivity Growth in the OECD
13 Pages Posted: 11 Mar 1999
Date Written: February 12, 1999
Abstract
We use a simple endogenous growth model with productive public capital to investigate the degree to which observed fiscal policies in eight OECD countries can account for slowdowns in the growth rates of aggregate labor productivity since 1970. In model simulations, we find that none of the observed public capital policies can generate slowdowns of sufficient magnitude to match those in the data. For most countries in our sample, a simulation that combines the observed public capital policy with the observed tax policy does a better job of accounting for the slowdown than either policy in isolation.
JEL Classification: E62, H4, H54, O41, E13
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Optimal Fiscal Policy, Public Capital and the Productivity Slowdown
By Kevin J. Lansing and Steven P. Cassou
-
Optimal Redistributive Capital Taxation in a Neoclassical Growth Model
-
Public Capital and Economic Growth: Issues of Quantity, Finance, and Efficiency
-
Optimal Government Spending and Taxation in Endgenous Growth Models
-
Optimal Tax Reform and Public-Sector Investment in Human Capital
By Kevin J. Lansing and Steven P. Cassou
-
Welfare, Stabilization, or Growth: A Comparison of Different Fiscal Objectives
By Steven P. Cassou and Kevin J. Lansing
-
Monetary Policy and Bond Option Pricing in an Analytical RBC Model
-
A Benchmark Estimate for the Capital Stock an Optimal Consistency Method