A Model of Economic Growth with Public Finance: Dynamics and Analytic Solution

Oliviero Carboni and Paolo Russu ()

International Journal of Economics and Financial Issues, 2013, vol. 3, issue 1, 1-13

Abstract: : This paper studies the equilibrium dynamics of a growth model with public finance where two different allocations of public resources are considered. The model simultaneously determines the optimal shares of consumption, capital accumulation, taxes and composition of the two different public expenditures which maximize a representative household's lifetime utility in a centralized economy. The analysis supplies a closed form solution. Moreover, with one restriction on the parameters (? = ? ) we fully determine the solutions path for all variables of the model and determine the conditions for balanced growth.

Keywords: Growth models; Fiscal policy; Public spending composition (search for similar items in EconPapers)
JEL-codes: E13 H20 H50 O40 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/314/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/314/pdf (text/html)

Related works:
Working Paper: A Model of Economic Growth with Public Finance: Dynamics and Analytic Solution (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2013-01-1

Ordering information: This journal article can be ordered from
https://econjournals.com/index.php/ijefi

Access Statistics for this article

More articles in International Journal of Economics and Financial Issues from International Journal of Economics and Financial Issues
Bibliographic data for series maintained by Monica Sinhat ().