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Government Spending in a Monetary Model of Endogenous Growth

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  • Stefano BOSI

    (University of Evry)

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    Abstract

    Few endogenous growth models are able to encompass unbalanced transitional dynamics. In Barro (1990) public spending is a productive externality and growth is only regular. The second best tax rate equals the public spending return. We provide a monetary version of Barro (1990), where short-run fluctuations are due to money and long-run effects to technology. Barro’s rule is found to be surprisingly robust within transition.

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    File URL: http://www.vponline.it/riviste/riss/2004/03/
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    Bibliographic Info

    Article provided by Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore in its journal Rivista Internazionale di Scienze Sociali.

    Volume (Year): 112 (2004)
    Issue (Month): 3 ()
    Pages: 239-253

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    Handle: RePEc:vep:journl:y:2004:v:112:i:3:p:239-253

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    Related research

    Keywords: cash-in-advance; endogenous growth; indeterminacy.;

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