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This paper evaluates optimal public investment and fiscal policy for countries characterized by limited tax and debt capacities. We study a non stochastic CRS endogenous growth model where public expenditure is an input in the production process, in countries where distortions and limited...
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increase in direct taxes (especially corporate taxes) and a decline in social contributions, and preceded a decline in other … direct taxes and an increase in wage bills. (iv) Fiscal adjustments followed a decline in other direct taxes and social … these findings, domestic resource mobilization should consider the time paths of the taxes and expenditure components to …
Persistent link: https://www.econbiz.de/10012796061
We outline the case for supporting self-insurance by imposing a tax on external borrowing in a model of an emerging market. Entrepreneurs finance tangible investments via bank intermediation of foreign borrowing, exposing the economy to negative fire-sale externalities at times of deleveraging;...
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We trace the linkages between the episodes of fiscal expansion and consolidation in 72 advanced and emerging and developing economies. The findings suggest that fiscal expansions are positively associated with economic growth, which in turn is positively linked with better sustainable...
Persistent link: https://www.econbiz.de/10012794621