Environment, growth and fiscal and monetary

Faria, Joao Ricardo (1998) Environment, growth and fiscal and monetary. Economic Modelling, 15 (1). pp. 113-123. ISSN 0264-9993. (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1016/S0264-9993(97)00016-3

Abstract

This paper investigates whether monetary and fiscal policies, such as lump-sum taxes, distortionary taxation and monetization of public deficit, have environmental impacts. We address this question extending the neoclassical monetary growth model. We include a state equation for natural resources, and consider natural resources as an input in the production function. Fiscal policy, through public spending, always has environmental impact. Monetary policy affects the environment if money is considered as a device to reduce transaction costs or as necessary to buy goods according to cash-in-advance models. However, the qualitative impact of both policies on the environment cannot be determined. All results depend on the effect of capital on the natural resources dynamics. The model provides a framework which relates public spending and inflation with environment.

Item Type: Article
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: R.F. Xu
Date Deposited: 29 Apr 2009 16:20
Last Modified: 04 Jul 2014 11:17
Resource URI: http://kar.kent.ac.uk/id/eprint/17721 (The current URI for this page, for reference purposes)
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