This paper discusses in a systematic and comprehensive way the existing literature on the relationship between the growth of countries' economies and various public finance instruments, such as tax policy, expenditure policy, and overall budgetary policy, from the perspectives of allocative...

The sustainability and optimality rules for government debt are derived within an intertemporal optimizing framework in which both capital and government debt are endogenous, driven by utility and profit-maximizing behavior of private agents and tax and expenditure policies of the government....