The composition of public expenditure and growth : a small-scale intertemporal model for low-income countries
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.
|Date of creation:||01 Dec 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
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.:
- Lawrance, Emily C, 1991. "Poverty and the Rate of Time Preference: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 54-77, February.
- Hung-ju Chen, 2003.
"Educational Systems, Growth and Income Distribution: A Quantitative Study,"
Computing in Economics and Finance 2003
13, Society for Computational Economics.
- Chen, Hung-ju, 2005. "Educational systems, growth and income distribution: a quantitative study," Journal of Development Economics, Elsevier, vol. 76(2), pages 325-353, April.
- Reinhart, Carmen & Ogaki, Masao & Ostry, Jonathan, 1996.
"Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison,"
6978, University Library of Munich, Germany.
- Masao Ogaki & Jonathan D. Ostry & Carmen M. Reinhart, 1996. "Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 38-71, March.
- Masao Ogaki & Jonathan David Ostry & Carmen Reinhart, 1995. "Saving Behavior in Low and Middle-Income Developing Countries; A Comparison," IMF Working Papers 95/3, International Monetary Fund.
- Reinhart, Carmen & Ogaki, Masao & Ostry, Jonathan, 1995. "Saving behavior in low- and middle-income developing countries," MPRA Paper 13757, University Library of Munich, Germany.
- Bird, Richard M. & Zolt, Eric M., 2005. "The limited role of the personal income tax in developing countries," Journal of Asian Economics, Elsevier, vol. 16(6), pages 928-946, December.
- Agenor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2005.
"Roads out of poverty? assessing the links between aid, public investment, growth, and poverty reduction,"
Policy Research Working Paper Series
3490, The World Bank.
- Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
- Pierre Richard AGÉNOR & Nihal BAYRAKTAR & Karim EL AYNAOUI, . "Roads out of Poverty? Assessing the Link between Aid, Public Investment, Growth and Poverty Reduction," EcoMod2004 330600003, EcoMod.
- Canning, David, 1999. "Infrastructure's contribution to aggregate output," Policy Research Working Paper Series 2246, The World Bank.
- Alonso-Carrera, Jaime & Freire-Seren, Maria Jesus, 2004.
"Multiple equilibria, fiscal policy, and human capital accumulation,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 28(4), pages 841-856, January.
- Jaime Alonso-Carrera & María Jesús Freire-Serén, 2002. "Multiple equilibria, fiscal policy, and human capital accumulation," Working Papers 0204, Universidade de Vigo, Departamento de Economía Aplicada.
- Gilbert Colletaz & Christophe Hurlin, 2006.
"Threshold Effects of the Public Capital Productivity : An International Panel Smooth Transition Approach,"
- Gilbert Colletaz & Christophe Hurlin, 2008. "Threshold Effects in the Public Capital Productivity: An International Panel Smooth Transition Approach," Working Papers halshs-00724208, HAL.
- Gilbert COLLETAZ & Christophe HURLIN, 2006. "Threshold Effects of the Public Capital Productivity : An International Panel Smooth Transition Approach," Working Papers 1669, Orleans Economic Laboratorys, University of Orleans.
- Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
- Kam, Eric, 2005. "A note on time preference and the Tobin Effect," Economics Letters, Elsevier, vol. 89(1), pages 127-132, October.
- Esfahani, Hadi Salehi & Ramirez, Maria Teresa, 2003. "Institutions, infrastructure, and economic growth," Journal of Development Economics, Elsevier, vol. 70(2), pages 443-477, April.
- Pierre Richard Agénor & Kyriakos C. Neanidis, 2006.
"The Allocation of Public Expenditure and Economic Growth,"
The School of Economics Discussion Paper Series
0608, Economics, The University of Manchester.
- Pierre‐Richard Agénor & Kyriakos C. Neanidis, 2011. "The Allocation Of Public Expenditure And Economic Growth," Manchester School, University of Manchester, vol. 79(4), pages 899-931, 07.
- Charles R. Hulten, 1996. "Infrastructure Capital and Economic Growth: How Well You Use It May Be More Important Than How Much You Have," NBER Working Papers 5847, National Bureau of Economic Research, Inc.
- Perli, Roberto & Sakellaris, Plutarchos, 1998. "Human capital formation and business cycle persistence," Journal of Monetary Economics, Elsevier, vol. 42(1), pages 67-92, June.
- Baldacci, Emanuele & Hillman, Arye L. & Kojo, Naoko C., 2004.
"Growth, governance, and fiscal policy transmission channels in low-income countries,"
European Journal of Political Economy,
Elsevier, vol. 20(3), pages 517-549, September.
- Naoko C. Kojo & Arye L. Hillman & Emanuele Baldacci, 2003. "Growth, Governance, and Fiscal Policy Transmission Channels in Low-Income Countries," IMF Working Papers 03/237, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4430. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.