The Role of the State in the Quality and Sustainability of Growth: A New Development Framework
Posted: 28 Feb 2008
Date Written: September 27, 2007
This essay explains the emergence of government failure within an economy and links this type of government failure with market failure. The current framework used to analyze the link between fiscal policy choice and sustainable growth patterns is incomplete in at least two ways. First, previous studies have disregarded certain essential interactions between fiscal policy choice, government and market failures, and long run growth. Second, the consequences of the reaction of society to fiscal policies and the subsequent government response to these social reactions for economic development have not been fully analyzed.
Keywords: Quality of Growth, Fiscal Policy, Sustainable Growth
JEL Classification: H5, E6
Suggested Citation: Suggested Citation