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Government Expenditure Determination on the Basis of Macroeconomics

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  • durongkaveroj, wannaphong

Abstract

Government expenditure is realized to be the exogenous variable and its change impacts national income through Aggregate Demand expression. The purpose of this study is to derive new macroeconomic expression based on Keynesian basis with SAM multiplier through mathematical approach. The study reveals that there are factors determined government spending including exogenous shock (government subsidy), taxation, and money supply.

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File URL: http://mpra.ub.uni-muenchen.de/55048/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 55048.

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Date of creation: 04 Apr 2014
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Handle: RePEc:pra:mprapa:55048

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Keywords: macroeconomics; government expenditure;

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  1. Stephen J. Turnovsky, 2000. "Methods of Macroeconomic Dynamics, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262201232, December.
  2. Lars Ljungqvist & Thomas J. Sargent, 2004. "Recursive Macroeconomic Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026212274x, December.
  3. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, December.
  4. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
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