Hu, Yunfang and Mino, Kazuo (2004): Fiscal Policy, Home Production and Growth Dynamics.
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Using an endogenous growth model with physical and human capital, we explore short-run as well as long-run effects of fiscal policy in the presence of households' production activities. We first show that our model has a unique balanced-growth path that satisfies saddlepoint stability. We then conduct fiscal policy experiments both in and out of the balanced-growth equilibrium. The main focus of the paper is to study the dynamic behavior of the model economy and the effects of fiscal actions analytically. In so doing, we examine how the presence of home production yields the policy implications that are different from those obtained in the standard setting that does not consider home production.
|Item Type:||MPRA Paper|
|Original Title:||Fiscal Policy, Home Production and Growth Dynamics|
|Keywords:||fiscal policy, home production, multi-sector endogenous growth model.|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D13 - Household Production and Intrahousehold Allocation
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household
|Depositing User:||Kazuo Mino|
|Date Deposited:||31. Aug 2009 14:33|
|Last Modified:||15. Feb 2013 20:56|
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