Government Spending Composition, Aggregate Demand, Growth and Distribution
Luca Zamparelli and
Daniele Tavani
No 7/15, Working Papers from Sapienza University of Rome, DISS
Abstract:
We study a demand-driven growth and distribution model with a public sector, both without and with government debt. Government spending is used to finance the accumulation of public capital and to pay wages to public employees. The interaction between public capital and induced technical change makes long-run growth: (i) hump-shaped in the composition of government spending, (ii) wage-led, and (iii) government spending-led. Provided that the interest rate on government bonds is kept sufficiently below the growth rate, the size of government debt is irrelevant for long-run growth.
Keywords: Keynesian growth; Government spending composition; Factor shares; Fiscal policy. (search for similar items in EconPapers)
JEL-codes: E12 E25 E62 H50 (search for similar items in EconPapers)
Date: 2015-11
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:
Downloads: (external link)
http://www.diss.uniroma1.it/sites/default/files/al ... lli_wpDISSE_7_15.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.diss.uniroma1.it:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)
Related works:
Journal Article: Government spending composition, aggregate demand, growth, and distribution (2017) 
Working Paper: Governement Spending Composition, Aggregate Demand, Growth and Distribution (2015) 
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:saq:wpaper:07/15
Access Statistics for this paper
More papers in Working Papers from Sapienza University of Rome, DISS Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Montalbano ().