[Title Page]
Contents
I. Role of Fiscal Policy in Economic Growth 9
1. Policy goals and the role of fiscal policy 10
A. Macroeconomic stabilization 11
B. Improvement of the distribution of fiscal resources 13
C. Equity of redistribution 16
2. Means to fiscal goals and their limits 17
3. Conclusion 20
II. Fiscal Spending and Economic Growth 21
1. Background 21
2. Fiscal spending and economic growth: recent trends 22
3. Theoretical approach 25
4. Empirical analysis 26
5. Conclusion 32
III. Taxation Policy and Economic Growth 34
1. Background 34
2. Theory 36
3. Empirical analysis 38
A. Literature survey 38
B. Empirical analysis 41
4. Conclusion 53
IV. Fiscal Policy and Equity: Income Inequality and Economic Growth 56
1. Introduction 56
2. Policy approach to mitigating income inequality 57
3. Empirical analysis 58
A. Income inequality and economic growth in Korea 58
B. Inclusive growth 60
4. Conclusion 65
V. Conclusion 67
Bibliography 71
〈Table I-1〉 Impact of Measures for Fiscal Stabilization 19
〈Table II-1〉 Functional Categorization of Fiscal Spending 23
〈Table II-2〉 Empirical Analysis of Functional Fiscal Spending and Economic Growth 30
〈Table II-3〉 Empirical Analysis of Functional Fiscal Spending and Economic Growth 31
〈Table III-1〉 Basic Statistics on Regression Analysis Variables 44
〈Table III-2〉 Growth Rate Regression Analysis(2001-2012) 47
〈Table III-3〉 Growth Rate Regression Analysis(1981-1990) 48
〈Table III-4〉 Growth Rate Regression Analysis(1981-1990) 50
〈Table III-5〉 Panel Regression Analysis of Growth Rates(1981-2012) 52
[Figure I-1] System of Fiscal Policy Goals 10
[Figure IV-1] Economic Growth and Income Inequality 59
[Figure IV-2] Inclusive Growth: Opportunity Curves 62