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An Analysis of Fiscal Policy and Economics Growth: The Case of Transition Economies

Author

Listed:
  • Minsoo Lee

    (Economics Department, Commerce Division, Lincoln University)

  • MoonJoong Tcha

    (Department of Economics, The University of Western Australia)

Abstract

Based on a low level of elasticity of substitution between labour and capital in the transitional economies, this paper theoretically suggests how they should be able to reach a stable growth path after a period of rapid dynamic short-run movement. The paper places particular emphasis on the role of government fiscal policy in exploring this phenomenon.

Suggested Citation

  • Minsoo Lee & MoonJoong Tcha, 2002. "An Analysis of Fiscal Policy and Economics Growth: The Case of Transition Economies," Economics Discussion / Working Papers 02-12, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:02-12
    as

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    File URL: https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2002/02-12.pdf
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    References listed on IDEAS

    as
    1. Weitzman, Martin L, 1970. "Soviet Postwar Economic Growth and Capital-Labor Substitution," American Economic Review, American Economic Association, vol. 60(4), pages 676-692, September.
    2. Blanchard, Olivier, 1996. "Theoretical Aspects of Transition," American Economic Review, American Economic Association, vol. 86(2), pages 117-122, May.
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    More about this item

    Keywords

    The transition economies; capital accumulation; budget deficit; tax rate;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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