Distorting taxes and productive spending economic growth
an analysis for the case of Mexico
DOI:
https://doi.org/10.29201/peipn.v17i35.101Keywords:
distorting taxes, productive public spending, endogenous growthAbstract
The objective of this article is to test the effects of distorting and non-distorting taxes and productive public spending on per capita GDP growth. For which an endogenous growth model is used and econometric simulations are developed. The results suggest that fiscal variables have a statistically significant impact on growth, Among the findings, it is found that distorting taxes contribute to reducing per capita GDP growth while non-distorting taxes do not.
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