登入
選單
返回
Google圖書搜尋
The Optimal Public Expenditure Financing Policy
Niloy Bose
Jill Ann Holman
Kyriakos C. Neanidis
其他書名
Does the Level of Economic Development Matter?
出版
SSRN
, 2007
URL
http://books.google.com.hk/books?id=MqjhzwEACAAJ&hl=&source=gbs_api
註釋
This paper explores how the optimal mode of public finance depends on the level of economic development. The theoretical analysis suggests that in the presence of capital market imperfection and liquidity shocks, the detrimental effect of inflation on growth is stronger (weaker) at lower (higher) levels of economic development. Consequently, income taxation (seigniorage) is a relatively less distortionary way of financing public expenditure for low-income (high-income) countries. We provide empirical support for our models predictions using a panel of 21 Organization for Economic Cooperation and Development countries and 40 developing countries observed over the period 1972-1999.
