Search Results

SORT BY: PREVIOUS / NEXT
Keywords:public expenditures 

Report
Finite horizons, political economy, and growth

This paper analyzes the political economy of growth when agents and the government have finite horizons and equilibrium growth is inefficient. A "representative" government (that is, one whose preferences reflect those of its constituents) endowed merely with the ability to tax and transfer can improve somewhat on the market allocation but cannot achieve first-best growth. Efficiency requires in addition the ability to bind future governments. We argue that this ability is related to political stability, and provide empirical evidence that stability and growth-related policies (namely ...
Staff Reports , Paper 102

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

Report 1 items

FILTER BY Author

FILTER BY Jel Classification

D9 1 items

H3 1 items

O5 1 items

FILTER BY Keywords

PREVIOUS / NEXT