Fiscal Policy: Government Spending

Angus Chu

Chapter 5 in Advanced Macroeconomics:An Introduction for Undergraduates, 2020, pp 35-43 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The neoclassical growth model not only allows us to analyse the effects of technology but also allows us to perform policy analysis. We now begin our analysis of government policies in the neoclassical growth model. We will consider a number of fiscal policy instruments in this chapter and the following chapters. The policy instrument that we consider in this chapter is government spending. Specifically, we analyse the macroeconomic effects of changes in government spending in the neoclassical growth model with elastic labour supply, which is a crucial feature because the expansionary effects of government spending operate through an income effect on labour supply.

Keywords: Macroeconomics; Dynamic General Equilibrium; Economic Growth; Endogenous Technological Change; Monetary Policy; Fiscal Policy; Business Cycles; Unemployment; Market Failure; The Neoclassical Growth Model; The Romer Model; The Schumpeterian Growth Model; The Solow Growth Model; The Ramsey Model; The New Keynesian Model (search for similar items in EconPapers)
JEL-codes: E6 E62 E66 F4 F43 O11 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781786349132_0005 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781786349132_0005 (text/html)
Ebook Access is available upon purchase.

Related works:
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:wsi:wschap:9781786349132_0005

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().