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Government Expenditure Determination on the Basis of Macroeconomics


  • durongkaveroj, wannaphong


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.

Suggested Citation

  • durongkaveroj, wannaphong, 2014. "Government Expenditure Determination on the Basis of Macroeconomics," MPRA Paper 55048, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:55048

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    References listed on IDEAS

    1. Lars Ljungqvist & Thomas J. Sargent, 2004. "Recursive Macroeconomic Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026212274x, January.
    2. Stephen J. Turnovsky, 2000. "Methods of Macroeconomic Dynamics, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262201232, January.
    3. 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.
    4. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, January.
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    More about this item


    macroeconomics; government expenditure;

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix

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