Logo image
Ramsey Fiscal Policy and Endogenous Growth: A Comment
Journal article   Peer reviewed

Ramsey Fiscal Policy and Endogenous Growth: A Comment

Economics Bulletin Economics Bulletin, Vol.30(3), pp.2450-2456
2010

Abstract

Ramsey Fiscal Policy;Endogenous Growth
Recently, Park (2009, Economic Theory 39, 377--398) extended the Barro endogenous growth model (1990) by assuming that tax rate is optimally chosen by the government and labor supply is elastic. Park claimed to have proved the existence of multiple balanced growth paths that exhibit zero growth rate and local indeterminacy. In this comment, it is shown that his claim is incorrect. The model has a unique balanced growth path that may exhibit positive growth, and the model has no transitional dynamics

Metrics

1 Record Views

Details

Logo image