In this paper, we examine the tourism sector in Maldives, focusing on tax revenue generation and long-run growth potential. We present a sectoral outlook for tourism and use time-series econometric techniques to estimate long-run tax base elasticities. We focus specifically on international...

To fulfill their tasks, governments rely on public expenditures and taxes. Both influence the incentives and shape the decisions and actions of private economic agents. As governments resort to both instruments simultaneously, their combined theoretical impact on economic performance is a priori...

We present a three sector OLG model with a homogenous output good that is produced with traditional or robot technology. The traditional sector produces with labor and capital, whereas the modern sector employs robots instead of labor. We find that little can prevent the ascent of a modern...

We investigate the conditions under which tax revenues can enhance economic growth. Using a newly constructed dataset consisting of 135 economies and spanning the period 1990-2019, we study how changes in tax revenues impact economic growth using a panel vector autoregression (PVAR) model. Tax...

This paper assesses recent theorising and empirical evidence on the impact of fiscal policy—taxes, public expenditures and budget deficits—on long-run growth. It considers the relevance of recent advances in growth theory for low-income countries and compares the evidence for low-income...