Productive government expenditures and long-run growth

Gerhard Glomm, B. Ravikumar

Research output: Contribution to journalArticle

219 Scopus citations

Abstract

The purpose of this paper is to review some of the recent developments in endogenous growth models. Specifically, our focus is on the growth effects of productive government spending in dynamic general equilibrium models. We use a simple overlapping generations model as our basic framework and illustrate the role of taxes and spending. We then examine several related issues: nonrivalry in publicly provided goods, existence and uniqueness of competitive equilibrium, endogenous public policy, ways of financing public expenditures, composition of publicly provided goods and services, and private alternatives. Finally, we review some empirical results related to output elasticity of public capital and educational expenditures.

Original languageEnglish (US)
Pages (from-to)183-204
Number of pages22
JournalJournal of Economic Dynamics and Control
Volume21
Issue number1
DOIs
StatePublished - Jan 1997

Keywords

  • Endogenous growth
  • Government spending
  • Infrastructure
  • Public education

ASJC Scopus subject areas

  • Economics and Econometrics
  • Control and Optimization
  • Applied Mathematics

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