|
|
Kei Hosoya |
|
''Tax financed government health expenditure and growth with capital deepening externality'' |
( 2003, Vol. 5 No.14 ) |
|
|
This paper develops a two-sector endogenous growth model with health capital and examines the impact tax financed health expenditure has on long-run growth. In this model, health capital is accumulated through government spending as a flow channel and a capital deepening externality as a stock channel. When arguing about the problem of growth maximizing flat tax, the latter channel plays a significant role for determining tax rate. |
|
|
Keywords: |
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General I1 - Health: General |
|
Manuscript Received : Jun 10 2003 | | Manuscript Accepted : Aug 21 2003 |
|