nep-fdg 2006-07-21 papers

on Financial Development and Growth

Issue of 2006‒07‒21
one paper chosen by
Iulia Igescu
Global Insight, GmbH

Fiscal Federalism and Economic Growth By Jan K. Brueckner

By:	Jan K. Brueckner (Department of Economics, University of California-Irvine)
Abstract:	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 public-good 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.
Date:	2005–10
URL:	http://d.repec.org/n?u=RePEc:irv:wpaper:050612&r=fdg

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