IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Government Size and the Composition of Public Spending in a Neoclassical Growth Model

Author Info

Listed author(s):
  • OA Carboni

    ()

  • G. Medda

Abstract

This paper develops a non-linear theoretical relationship between public spending and economic growth. The model identifies the "optimal" size of government and the "optimal" composition of government spending. Given the size of the government, different allocations of public resources lead to different growth rates in the transition dynamics, depending on their elasticity. We argue that neglecting the hypothesis of non-linearity and the different impact different kinds of public spending have on economic performance results in models which suffer from mis-specification. Traditional linear regression analysis may thus be biased

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://crenos.unica.it/crenos/node/250
Download Restriction: no
File URL: http://crenos.unica.it/crenos/sites/default/files/wp/07-01.pdf
Download Restriction: no

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200701.

as
in new window

Length:
Date of creation: 2007
Handle: RePEc:cns:cnscwp:200701
Contact details of provider: Postal:
Via S. Giorgio 12, I-09124 Cagliari

Phone: +70/6756406
Fax: +70/6756402
Web page: http://www.crenos.unica.it/
Email:


More information through EDIRC

Keywords: neoclassical and augmented growth models; fiscal policy; public spending composition;

Find related papers by JEL classification:

  • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
  • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
  • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
  • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
  • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:

as
in new window


  1. Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Geographical and sectoral clusters of innovation in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(4), pages 715-739, December.
  2. R. Paci & E. Batteta, 2003. "Innovation Networks and Knowledge Flows across the European Regions," Working Paper CRENoS 200313, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. S. Deidda & R. Paci & S. Usai, 2002. "Spatial Externalities and Local Economic Growth," Working Paper CRENoS 200206, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Boero, Gianna & Smith, Jeremy & Wallis, Kenneth F, 2002. "The Properties Of Some Goodness-Of-Fit Tests," The Warwick Economics Research Paper Series (TWERPS) 653, University of Warwick, Department of Economics.
  5. M. Manchin & AM. Pinna, 2003. "Border effects in the enlarged EU area," Working Paper CRENoS 200301, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. Brau Rinaldo & Fiorentini Gianluca & Lippi Bruni Matteo & Pinna Anna Maria, 2004. "La disponibilità a pagare per la copertura del rischio di non autosufficienza: analisi econometrica e valutazioni di "policy"," Politica economica, Società editrice il Mulino, issue 3, pages 357-388.
  7. G. Boero & R. Pinna, 2003. "Durata degli studi e voto di laurea: una indagine econometrica su alcune facoltà dell'Università di Cagliari," Working Paper CRENoS 200302, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  8. R. Brau & D. Cao, 2005. "Uncovering the macrostructure of tourists' preferences. A choice experiment analysis of tourism demand to Sardinia," Working Paper CRENoS 200514, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  9. Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2008. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 247-285, 04.
  10. King, Robert G & Rebelo, Sergio, 1990. "Public Policy and Economic Growth: Developing Neoclassical Implications," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 126-150, October.
  11. Deidda, Luca & Fattouh, Bassam, 2008. "Banks, financial markets and growth," Journal of Financial Intermediation, Elsevier, vol. 17(1), pages 6-36, January.
  12. G. Atzeni & OA Carboni, 2006. "Regional Disparity in ICT Adoption: an Empirical Evaluation of The Effects of Subsidies in Italy," Working Paper CRENoS 200608, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  13. Di Liberto Adriana, 2007. "Convergence and Divergence in Neoclassical Growth Models with Human Capital," Economia politica, Società editrice il Mulino, issue 2, pages 289-322.
  14. G. Medda & C. Piga, 2004. "R&S e spillover industriali: un'analisi sulle imprese italiane," Working Paper CRENoS 200406, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  15. Balia, Silvia & Jones, Andrew M., 2008. "Mortality, lifestyle and socio-economic status," Journal of Health Economics, Elsevier, vol. 27(1), pages 1-26, January.
  16. Luigi Guiso & Fabiano Schivardi, 2011. "What Determines Entrepreneurial Clusters?," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 61-86, 02.
  17. RM. Serrano & R. Paci & S. Usai, 2003. "Spatial distribution of innovation activity. The case of European regions," Working Paper CRENoS 200310, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  18. AM. Pinna & C. Fancello, 2002. "How far do we trade intermediate inputs?," Working Paper CRENoS 200207, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  19. F. Adriani & LG Deidda, 2004. "Few bad apples or plenty of lemons: which makes it harder to market plums?," Working Paper CRENoS 200413, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  20. Rosina Moreno & Raffaele Paci & Stefano Usai, 2006. "Innovation Clusters in the European Regions," European Planning Studies, Taylor & Francis Journals, vol. 14(9), pages 1235-1263, May.
  21. Fabio Cerina & Francesco Pigliaru, 2007. "Agglomeration and Growth in the NEG: A Critical Assessment," Chapters,in: New Directions in Economic Geography, chapter 5 Edward Elgar Publishing.
  22. Elisabetta Strazzera & Margarita Genius, 2004. "The Copula Approach to Sample Selection Modelling: An Application to the Recreational Value of Forests," Working Papers 2004.73, Fondazione Eni Enrico Mattei.
  23. Boero, Gianna & Marrocu, Emanuela, 2004. "The performance of SETAR models: a regime conditional evaluation of point, interval and density forecasts," International Journal of Forecasting, Elsevier, vol. 20(2), pages 305-320.
  24. G. Ascari & E. Marrocu, 2003. "Forecasting inflation: a comparison of linear Phillips curve models and nonlinear time serie models," Working Paper CRENoS 200307, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  25. F. Cerina, 2006. "Tourism specialization and environmental sustainability in a dynamic economy," Working Paper CRENoS 200602, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  26. A. Sassu & S. Lodde, 2003. "Piccole imprese e tecnologie della comunicazione: un'indagine empirica," Working Paper CRENoS 200312, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  27. R. Paci & S. Usai, 2006. "Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001," Working Paper CRENoS 200612, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  28. M. Kugler & R. Oppes, 2005. "Collateral and Risk Sharing in group lending: evidence from an urban microcredit program," Working Paper CRENoS 200509, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  29. Adriana Di Liberto & Francesco Pigliaru & Roberto Mura, 2008. "How to measure the unobservable: a panel technique for the analysis of TFP convergence," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 343-368, April.
  30. B. Dettori & R. Paci & S. Usai, 2005. "Technological activity in the european regions," Working Paper CRENoS 200513, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  31. G. Concu, 2004. "A choice modelling approach to investigate biases in individual and aggregated benefit estimates due to omission of distance," Working Paper CRENoS 200412, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  32. G. Concu, 2004. "Effects of distance on non-use values," Working Paper CRENoS 200411, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  33. Emanuela Marrocu & Raffaele Paci, 2010. "The effects of public capital on the productivity of the Italian regions," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 989-1002.
  34. G. Boero & T. Laureti & R. Naylor, 2005. "An econometric analysis of student withdrawal and progression in post-reform Italian Universities," Working Paper CRENoS 200504, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  35. R. Brau & C. Carraro, 2004. "The economic analysis of voluntary approaches to environmental protection. A survey," Working Paper CRENoS 200420, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  36. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2003. "How Fast are the Tourism Countries Growing? The cross-country evidence," Working Papers 2003.85, Fondazione Eni Enrico Mattei.
  37. R. Pinna & G. Boero, 2002. "La performance esterna dell'Università di Cagliari: il caso delle facoltà del polo giuridico-economico," Working Paper CRENoS 200212, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  38. F. Adriani & LG Deidda, 2006. "The Monopolist's Blues," Working Paper CRENoS 200611, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  39. S. Lodde, 2002. "Patti Territoriali e specializzazione produttiva nel Mezzogiorno," Working Paper CRENoS 200211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  40. E. Marrocu & R. Paci & F. Pigliaru, 2006. "Gli effetti del capitale pubblico sulla produttività delle regioni italiane," Working Paper CRENoS 200601, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  41. A. Di Liberto, 2004. "Convergence clubs and the role of human capital in Spanish Regional Growth," Working Paper CRENoS 200418, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  42. A. Sassu & S. Lodde, 2004. "Le tecnologie dell'informazione e della comunicazione nelle piccole imprese dei settori maturi," Working Paper CRENoS 200410, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  43. M. Pulina & B. Biagi, 2006. "Tourism, environmental quality and economic growth: empirical evidence and policy implications," Working Paper CRENoS 200609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  44. R. Brau & M. Lippi Bruni & AM. Pinna, 2004. "Public vs private demand for covering long term care expenditures," Working Paper CRENoS 200408, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
Full references (including those not matched with items on IDEAS)

The CitEc project has not yet found citations to this item.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Access and download statistics

When requesting a correction, please mention this item's handle: RePEc:cns:cnscwp:200701. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonello Pau)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.