IMF Working Papers

Fiscal Policy and Long-Run Growth

By Vito Tanzi, Howell H Zee

October 1, 1996

Preview Citation

Format: Chicago

Vito Tanzi, and Howell H Zee. Fiscal Policy and Long-Run Growth, (USA: International Monetary Fund, 1996) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper discusses in a systematic and comprehensive way the existing literature on the relationship between the growth of countries’ economies and various public finance instruments, such as tax policy, expenditure policy, and overall budgetary policy, from the perspectives of allocative efficiency, macroeconomic stability, and income distribution. It reviews both the conceptual linkages between each of the instruments and growth and the empirical evidence on such relationships. It broadly concludes that fiscal policy could play a fundamental role in affecting the long-run growth performance of countries.

Subject: Expenditure, Fiscal policy, Human capital, Income distribution, Income inequality, Labor, National accounts

Keywords: Capital, Externality effect of public expenditure, Fiscal policy variable, Growth effect, Growth theory, Human capital, Income, Income distribution, Income equality, Income inequality, Income taxation, Physical capital, Private sector, Private sector productivity, Public expenditure, Public finance, Rate of change, Transmission mechanism, Unforeseen public expenditure, WP

Publication Details

  • Pages:

    36

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1996/119

  • Stock No:

    WPIEA1191996

  • ISBN:

    9781451854121

  • ISSN:

    1018-5941

Notes

Also published in Staff Papers, Vol. 44, No. 2, June 1997.

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