MARC Record from University of Toronto

LEADER: 02117cam 2200241Ia 4500
001 ocm75967796
005 20070214140617.0
008 061114s2006 dcua b i000 0 eng d
100 1 $aPark, Hyun.
245 10 $aExpenditure composition and distortionary tax for equitable economic growth /$cprepared by Hyun Park.
260 $aWashington, D.C. :$bInternational Monetary Fund, Fiscal Affairs Dept.,$cc2006.
300 $a38 p. :$bill. ;$c28 cm.
440 0 $aIMF working paper ;$vWP/06/165
500 $a"June 2006."
504 $aIncludes bibliographical references (p. 33-38).
530 $aAlso available on the World Wide Web.
520 3 $aThis paper continues the study of optimal fiscal policy in a growing economy by exploring a case in which the government simultaneously provides three main categories of expenditures with distortionary tax finance: public production services, public consumption services, and state-contingent redistributive transfers. The paper shows that in a general equilibrium model with given exogenous fiscal policy, a nonlinear relation exists between the suboptimal long run growth rate in a competitive economy and distortionary tax rates. When fiscal policy is endogenously chosen at a social optimum, the relation between the rate of growth and tax rates is always negative. These two conclusions suggest that the interaction between fiscal policy and growth may be complicated enough that it cannot be captured in a simple linear model using an aggregate measure of fiscal policy. The sources of nonlinearity include expectation and coordination of fiscal policy, impulse response of government policies, and the presence of positive externality due to government spending.
650 0 $aFiscal policy$xEconometric models.
650 0 $aExpenditures, Public$xEconometric models.
650 0 $aTaxation$xEconometric models.
710 2 $aInternational Monetary Fund.$bFiscal Affairs Dept.
856 41 $3Full text;$zIssues from 1997- :$uhttp://www.imf.org/external/pubs/cat/wp1%5Fsp.cfm?
949 $aUN9..MF...6-2006I165$wLC$c1$i6071488-1001$lGOVPUBS$mDATAMAPGOV$rN$sY$tBOOK$u14/2/2007