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The composition of public expenditure and growth : a small-scale intertemporal model for low-income countries

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  • Bayraktar, Nihal
  • Moreira, Emmanuel Pinto

Abstract

This paper presents a small-scale intertemporal model of endogenous growth that accounts for the composition of public expenditure and externalities associated with public capital. Government spending is disaggregated into various components, including maintenance, security, and investment in education, health, and core infrastructure. After studying its long-run properties, the model is calibrated for Haiti, using country-specific information as well as parameter estimates from the literature. A variety of policy experiments are then reported, including a reallocation of spending aimed at creating fiscal space to promote public investment; an improvement in fiscal management that leads to a reduction in tax collection costs; higher spending on security; and a composite fiscal package.

Suggested Citation

  • Bayraktar, Nihal & Moreira, Emmanuel Pinto, 2007. "The composition of public expenditure and growth : a small-scale intertemporal model for low-income countries," Policy Research Working Paper Series 4430, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4430
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    References listed on IDEAS

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    Cited by:

    1. Emmanuel Pinto Moreira, 2009. "Linking Fiscal Policy and Growth in PER Reports : An Operational Framework for Low-Income Countries," World Bank Publications - Reports 11125, The World Bank Group.
    2. Nihal Bayraktar, 2017. "Public Security Spending and Growth," EcoMod2017 10212, EcoMod.

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    Keywords

    ; Debt Markets; Economic Theory&Research; Public Sector Economics&Finance; Public Sector Expenditure Analysis&Management;
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