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We present a theory of endogenous fiscal policy and growth. Fiscal policy — debt, income tax, spending on local public … we call the shrinking government effect: public debt grows faster than GDP, provisions of public goods and infrastructure …
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We present a theory of endogenous fiscal policy and growth. Fiscal policy -- debt, income tax, spending on local public … we call the shrinking government effect: public debt grows faster than GDP, provisions of public goods and infrastructure …
Persistent link: https://www.econbiz.de/10012457009
In this paper we study the incentives for basic-research investments by governments in a globalized world. For this purpose, we develop a two-country Schumpeterian growth model in which each country chooses its basic-research investments. We find that a country's basic-research investments...
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