Bania, Niel; Gray, Jo Anna; Stone, Joe - Department of Economics, University of Oregon - 2006
BarroÕs (1990) model of endogenous growth implies that economic growth will initially rise with an increase in taxes directed toward ÒproductiveÓ expenditures (e.g., education, highways, and streets), but will subsequently decline. Previous tests of the model, including Barro (1989,...