The influence of different forms of government spending on distribution and growth

Pasquale Commendatore, Carlo Panico and Antonio Pinto

MPRA Paper from University Library of Munich, Germany

Abstract: This paper deals with the influence of different types of government expenditure on growth. It widens that proposed by the literature which follows the lines set by Barro (1990) because it adds the changes working through the demand side, generated by the variations in the distribution of the net income of the economy, to those working through the supply side, generated by the variations in factor productivity. The analysis considers a government sector with a balanced budget and an autonomous and nonlinear investment function, interpreted along a Kaleckian and a Classical-Harrodian line. It shows under which conditions different types of government expenditure are beneficial or detrimental for economic growth, comparing some results with those reached by Barro (1990) and points out the emergence of phenomena like multiple equilibria, hysteresis and low growth traps.

Keywords: Distribution; Growth; Government expenditure; post-Keynesian theory; Nonlinearity (search for similar items in EconPapers)
JEL-codes: E12 E25 E62 O41 (search for similar items in EconPapers)
Date: 2009-05-02
New Economics Papers: this item is included in nep-fdg and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: THE INFLUENCE OF DIFFERENT FORMS OF GOVERNMENT SPENDING ON DISTRIBUTION AND GROWTH (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:15364

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