2012 Fiscal Year Final Research Report
The Effects of Tax Policies on Economic Growth and Welfare under Money in the Production Function model
| Project/Area Number |
22730270
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Okinawa International University |
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Principal Investigator |
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| Project Period (FY) |
2010 – 2012
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| Keywords | 公共経済学 |
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| Research Abstract |
In this research, I study effects of various government expenditure financing on economic growth and welfare in the case where money is helpful in reducing firm’s friction for production. First, I investigate a dynamic property of balanced growth path equilibrium under money-in-the-production-function model. I next show the effect of income tax financing and money financing on economic growth and welfare. Moreover, under the fixed rate of capital tax distortion, there is the welfare maximizing mixture of level of monetary growth and rate of income tax.
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