BarroChamley, , , , : Incorporating endogenous public spending, the basic characteristic of the Barro model, into the Chamley model, this paper discusses the optimal taxation and public spending composition in e...BarroChamley, , , , : Incorporating endogenous public spending, the basic characteristic of the Barro model, into the Chamley model, this paper discusses the optimal taxation and public spending composition in economic growth. The two-stage backward induction method is adopted to explore the general optimality (including the first and second best) conditions for taxation and public spending, and the explicit solutions to optimal taxation and public spending composition are showed in a specific example. Finally, we estimate China’s optimal level of macro tax burden with the help of numerical calculation.View full textDownload full text展开更多
Welfare expenditure is characterized by rigidity,i.e.,it goes up easily but is very hard to get down.We introduced welfare rigidity into an endogenous growth model that includes government expenditure to analyze the i...Welfare expenditure is characterized by rigidity,i.e.,it goes up easily but is very hard to get down.We introduced welfare rigidity into an endogenous growth model that includes government expenditure to analyze the impact of welfare rigidity and the composition of public expenditure on economic growth and family utility.Our findings show that welfare spending and economic growth have a non-monotonic relationship that is negative or inverted U-shaped depending on cross-country differences.Higher welfare rigidity reduces long-term economic growth and household utility.According to the estimated optimal size of welfare expenditure,China,as a developing country with a large population,has to do all it can to improve people’s livelihood but must at the same time weigh its limited resources so that its welfare expenditure does not fall into a“welfare trap.”展开更多
基金sponsored by the Youth Program of the National Social Science Foundation of China(Grant No.:10CJL013)the Key Research Base of Humanities and Social Sciences at Universities in Zhejiang Province(Public Finance)
文摘BarroChamley, , , , : Incorporating endogenous public spending, the basic characteristic of the Barro model, into the Chamley model, this paper discusses the optimal taxation and public spending composition in economic growth. The two-stage backward induction method is adopted to explore the general optimality (including the first and second best) conditions for taxation and public spending, and the explicit solutions to optimal taxation and public spending composition are showed in a specific example. Finally, we estimate China’s optimal level of macro tax burden with the help of numerical calculation.View full textDownload full text
文摘Welfare expenditure is characterized by rigidity,i.e.,it goes up easily but is very hard to get down.We introduced welfare rigidity into an endogenous growth model that includes government expenditure to analyze the impact of welfare rigidity and the composition of public expenditure on economic growth and family utility.Our findings show that welfare spending and economic growth have a non-monotonic relationship that is negative or inverted U-shaped depending on cross-country differences.Higher welfare rigidity reduces long-term economic growth and household utility.According to the estimated optimal size of welfare expenditure,China,as a developing country with a large population,has to do all it can to improve people’s livelihood but must at the same time weigh its limited resources so that its welfare expenditure does not fall into a“welfare trap.”
