Unionized Labour Market, Unemployment Allowances, Productive Public Expenditure And Endogenous Growth

2015 ◽  
Vol 66 (3) ◽  
pp. 397-425 ◽  
Author(s):  
Chandril Bhattacharyya ◽  
Manash Ranjan Gupta
Keyword(s):  
Labour Market ◽  
Endogenous Growth ◽  
Public Expenditure ◽  
Productive Public Expenditure

scholarly journals GROWTH AND PUBLIC INFRASTRUCTURE

2010 ◽  
Vol 14 (S2) ◽  
pp. 258-274 ◽  
Author(s):  
Nigar Hashimzade ◽  
Gareth D. Myles
Keyword(s):  
European Union ◽  
Tax Policy ◽  
Growth Process ◽  
Public Expenditure ◽  
The European Union ◽  
Public Infrastructure ◽  
The Individual ◽  
Productive Public Expenditure

The paper analyzes a multicountry extension of the Barro model of productive public expenditure. In the presence of positive infrastructural externalities between countries, the provision of infrastructure will be inefficiently low if countries do not coordinate. This provides a role for a supranational body, such as the European Union, to coordinate the policies of the individual governments. It is shown how intervention by a supranational body can raise welfare by internalizing the infrastructural externality. Infrastructural externalities increase the importance of tax policy in the growth process and distribute the benefits of taxation across countries.

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