| Titre : | Threshold effects in monetary and fiscal policies in a growth model: Assessing the importance of the financial system (2009) |
| Auteurs : | Alexandru Minea ; Patrick Villieu |
| Type de document : | Article : Revues - Articles |
| Dans : | Journal of macroeconomics (Vol. 31 N°2, June 2009) |
| Article en page(s) : | pp. 304-319 |
| Langues: | Anglais |
| Catégories : |
[Eurovoc] ÉCONOMIE > situation économique > développement économique > croissance économique [Eurovoc] FINANCES > économie monétaire > politique monétaire [Eurovoc] FINANCES > fiscalité > politique fiscale |
| Tags : | endogenous growth ; threshold effects ; monetary policy ; fiscal policy ; financial repression ; financial development |
| Résumé : | We extend the [Barro, R., 1990. Government spending in a simple model of economic growth. Journal of Political Economy 98, 103–125] model to money financing of public expenditures, in a setup where money demand is motivated by a ‘‘transaction cost” technology, exhibiting the ‘‘cash-in-advance” specification as a special case, in the spirit of [Palivos, T., Yip, C., 1995. Government expenditure financing in an endogenous growth model: a comparison. Journal of Money, Credit and Banking 27, 1159–1178]. Allowing for productive public spending yields threshold effects between long-run growth and both income taxation and seigniorage, thus reproducing recent stylized facts. Moreover, in the cash-in-advance special case, we show that, to maximize long-run growth and/or welfare, government must use seigniorage-only or taxes only, depending on parameters, and in particular on the degree of financial development. In contrast, the general form of money demand motivated by a ‘‘transaction cost” technology produces interior solutions in which both seigniorage and taxes are used. An empirical section confirms our theoretical results. |
| Doi : |
DOI : 10.1016/j.jmacro.2008.10.005 
|
| Axe de recherche : | Financement du développement |
| En ligne : | https://hal.archives-ouvertes.fr/hal-00387507 |
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