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This paper develops an endogenous growth model of the influence of public investment, public transfers, and distortionary taxation on the rate of economic growth. The growth-enhancing effects of investment in public capital and transfer payments are modeled, as is the growth-inhibiting influence...
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This paper develops an endogenous growth model of the influence of public investment, public transfers, and distortionary taxation on the rate of economic growth. The growth-enhancing effects of investment in public capital and transfer payments are modeled, as is the growth-inhibiting influence...
Persistent link: https://www.econbiz.de/10014396020
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's intertemporal budget constraint. Our empirical analysis, based on Italy, shows that the Italian government is meeting its … disequilibria is entirely carried out by changes in the average tax rate, with a weakly exogenous government spending, possibly … determined by the political process. We document some rigidities of the tax instrument, in terms of downward inflexibility of the …
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