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on Financial Development and Growth |
| By: | Lacheheb, Miloud; Med Nor, Norashidah; Baloch, Imdadullah |
| Abstract: | This study examines the relationship between health expenditure, education and economic growth in MENA countries using panel data estimation. Our results based on random effect estimation endorse a relationship between health expenditure, education and economic growth. Data were obtained from the World Bank Development Indicators for the period of 1995 to 2010 for 20 countries from Middle East and North Africa region. Importantly, our results reveal that health expenditure and education have significantly positive effect on economic growth. Also gross fixed capital formation positively, but insignificantly, related to economic growth of MENA countries. Therefore, investment in human capital, namely health and education, will increase income in these countries. |
| Keywords: | Economic growth; Education; Health expenditure; MENA countries |
| JEL: | E61 I1 I15 I25 |
| Date: | 2014–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60388&r=fdg |
| By: | Ghosh, Sugata; Wendner, Ronald |
| Abstract: | This paper analyzes the impact of positional preferences, exhibiting conspicuous consumption and conspicuous wealth, on optimal consumption- and income taxes, for an endogenous growth model with public capital. Positional preferences raise the endogenous growth rate if the elasticity of intertemporal substitution is larger than one. Even if labor supply is exogenous, the consumption externalities introduce distortions so long as preferences are wealth-dependent, and with or without the presence of conspicuous wealth. Consequently, optimal consumption- and income taxes differ from zero. Numerical simulations present the effects of fiscal policy on the balanced growth path and transitional dynamics. |
| Keywords: | Conspicuous consumption, conspicuous wealth, endogenous growth, public capital, optimal consumption tax |
| JEL: | D62 D91 E21 H21 O41 |
| Date: | 2014–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60337&r=fdg |
| By: | Sugata Ghosh (Brunel University, London); Ronald Wendner (University of Graz) |
| Abstract: | This paper analyzes the impact of positional preferences, exhibiting conspicuous consumption and conspicuous wealth, on optimal consumption- and income taxes, for an endogenous growth model with public capital. Positional preferences raise the endogenous growth rate if the elasticity of intertemporal substitution is larger than one. Even if labor supply is exogenous, the consumption externalities introduce distortions so long as preferences are wealth-dependent, and with or without the presence of conspicuous wealth. Consequently, optimal consumption- and income taxes differ from zero. Numerical simulations present the effects of fiscal policy on the balanced growth path and transitional dynamics. |
| Keywords: | Saving rate dynamics; non-monotonic transition path; hyperbolic discounting; short-term planning; neoclassical growth model |
| JEL: | D91 E21 O40 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2014-09&r=fdg |