Post-War British Economic Growth and the Legacy of Keynes

Posted: 13 Jun 1998

See all articles by Thomas F. Cooley

Thomas F. Cooley

New York University - Leonard N. Stern School of Business; National Bureau of Economic Research (NBER)

Lee E. Ohanian

University of California, Los Angeles (UCLA) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: Undated

Abstract

The policies used by Britain to finance World War II represented a dramatic departure from the policies used to finance earlier wars and were very different from the policies used by the United States. Britain relied much more heavily on the taxation of factor incomes. In this paper we describe the magnitude of the public finance problem faced by Britain and examine the origins of the fiscal policies that were adopted. We analyze these policies using the perspective of an endogenous growth model. We use the model to contrast the policies actually used with tax smoothing policies and the policies advocated by John Maynard Keynes.

JEL Classification: H56, N44

Suggested Citation

Cooley, Thomas F. and Ohanian, Lee E., Post-War British Economic Growth and the Legacy of Keynes (Undated). Simon School of Business Working Paper MP 95-04. Available at SSRN: https://ssrn.com/abstract=4004

Thomas F. Cooley (Contact Author)

New York University - Leonard N. Stern School of Business ( email )

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Lee E. Ohanian

University of California, Los Angeles (UCLA) - Department of Economics ( email )

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