Estructura impositiva, capital público y ciclo económico
ISSN: 2341-2356
Year of publication: 1997
Issue: 15
Pages: 1-22
Type: Working paper
More publications in: Documentos de Trabajo (ICAE)
Abstract
The aim of this paper is lo analize the effecls of laxes and the design of fiscal poliey on tbe business cycle features. We sel a general equilibrium model, calibrated with Spanish economy data, where public capital stock is an additional input. Distorting effects of laxes change business cycle properties. Consumption laxes reduce output fluctuations relative lo laxes on personal incorne. The design of public investment over the business cycle cannot stimulate private investment. Simulations of the model match some stylized facts of Spanish business cycle. Weak correlation between public and private investment in the last 25 years could be explained as a barely procyclical policy of public investment.