Fiscal federalism and economic growth
نویسنده
چکیده
This paper uses an endogenous-growth model with overlapping generations to explore the connection between fiscal federalism and economic growth. The analysis shows that federalism, which allows publicgood levels to be tailored to suit the differing demands of young and old consumers, who live in different jurisdictions, increases the incentive to save. This stronger incentive in turn leads to an increase in investment in human capital, and a byproduct of this higher investment is faster economic growth. © 2006 Elsevier B.V. All rights reserved.
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تاریخ انتشار 2005