The influence of different forms of government spending on distribution and growth
AbstractThis paper deals with the influence of different types of government expenditure on growth. It widens that proposed by the literature which follows the lines set by Barro (1990) because it adds the changes working through the demand side, generated by the variations in the distribution of the net income of the economy, to those working through the supply side, generated by the variations in factor productivity. The analysis considers a government sector with a balanced budget and an autonomous and nonlinear investment function, interpreted along a Kaleckian and a Classical-Harrodian line. It shows under which conditions different types of government expenditure are beneficial or detrimental for economic growth, comparing some results with those reached by Barro (1990) and points out the emergence of phenomena like multiple equilibria, hysteresis and low growth traps.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15364.
Date of creation: 02 May 2009
Date of revision:
Distribution; Growth; Government expenditure; post-Keynesian theory; Nonlinearity;
Other versions of this item:
- Pasquale Commendatore & Carlo Panico & Antonio Pinto, 2011. "The Influence Of Different Forms Of Government Spending On Distribution And Growth," Metroeconomica, Wiley Blackwell, vol. 62(1), pages 1-23, 02.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E25 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-30 (All new papers)
- NEP-FDG-2009-05-30 (Financial Development & Growth)
- NEP-MAC-2009-05-30 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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