Optimal Fiscal Policy and Endogenous Growth in Imperfectly Competitive Product Markets
Date Issued
2012
Date
2012
Author(s)
Chi, Mei-Chun
Abstract
This thesis analyzes the effects of fiscal policies in imperfectly competitive product markets with public and private capital. Most of our attention focuses on the numerical simulations of a calibrated economy. Our analysis acquires the following conclusions: (i) a higher degree of monopoly power of each intermediate goods firm will impair growth and welfare, while the government’s expenditure ratio for public capital increase will have a positive impact; (ii) there is an invert-U shaped relationship between the income tax rate and the economic system; (iii) Barro proposition is not tenable; (iv) endogenous labor supply is a critical parameter to affect the choice of the income tax rate.
Subjects
Endogenous Growth Model
Fiscal Policy
Endogenous Labor Supply
Imperfectly Competitive Product Markets
Type
thesis
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