Endogenous Groth, Market Failures and Economic Policy [Paperback]

Endogenous Growth, Market Failures and Economic Policy develops, within a rigorous formal framework, innovative and unconventional macroeconomic policy perspectives that can be deduced from the New Growth Theory in the presence of market imperfections, adopting the standard structure of fiscal, monetary and trade policy for the book. For instance, the introduction of monopolistic competition leads to positive growth effects of fiscal policy as well as protection of infant industries.List of Figures and Tables Acknowledgements Introduction: the Empirics of Economic Growth PART I: FISCAL POLICY Economic Growth, Environmental Damage, and Sustainable Taxation Endogenous Growth, Division of Labour, and Fiscal Policy Debts, Deficits, and Economic Growth PART II: MONETARY POLICY Monetary Policy in a New Keynesian Model of Endogenous Growth Foreign Indebtedness Inflation, and Exchange Rate Overshooting PART III: TRADE POLICY Protectionism, Trade, and Growth Estimating Growth Conclusion: Policy Implications Appendix Endnotes Bibliography Name Index Subject Index

'Growth does not come like manna from heaven. This book explains why and gives the empirical results to show it. It thus allows challenging discussions of the trade-off between environment and growth and the effects of economic policy on growth. A novel feature of the book is the analysis of growth in open economies and, more particularly, the growth effects of the Common Market.' - Rick van der Ploeg, Professor of Political Economy, University of Amsterdam and member of the Dutch Parliament

'This book is required reading for economists dealing with long-run growth. It combines compelling empirical and theoretical analysis to provide informed policy advice.' - Professor Christian Keuschnigg, Department of Economics, University of Saarland

'Dr. Zagler's book is a stimulating combination of sound theoretical analysis and relevant economic policy applications. It demonstrates l.