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The Global Environment, Natural Resources, and Economic Growth$
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Alfred Greiner and Willi Semmler

Print publication date: 2008

Print ISBN-13: 9780195328233

Published to Oxford Scholarship Online: September 2008

DOI: 10.1093/acprof:oso/9780195328233.001.0001

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Growth and Welfare Effects of Fiscal Policy

Growth and Welfare Effects of Fiscal Policy

Chapter:
(p.17) 3 Growth and Welfare Effects of Fiscal Policy
Source:
The Global Environment, Natural Resources, and Economic Growth
Author(s):

Alfred Greiner (Contributor Webpage)

Willi Semmler (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195328233.003.0004

This chapter analyzes how fiscal policy affects both growth rate and welfare in our economy. In particular, it analyzes how the long-run balanced growth rate reacts to fiscal policy and to the introduction of a less polluting technology. It studies the effects of fiscal policy, taking into account transition dynamics, and analyzes welfare effects of fiscal policy on the environment and on the balanced growth path as well as the social optimum.

Keywords:   growth effects, balanced growth path, social optimum, fishcal policy, transition dynamics

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