Government Spending in a Monetary Model of Endogenous Growth

Few endogenous growth models are able to encompass unbalanced transitional dynamics. In Barro (1990) public spending is a productive externality and growth is only regular. The second best tax rate equals the public spending return. We provide a monetary version of Barro (1990), where short-run fluctuations are due to money and long-run effects to technology. Barro’s rule is found to be surprisingly robust within transition.

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Year of publication:	2004
Authors:	BOSI, Stefano
Published in:	Rivista Internazionale di Scienze Sociali. - Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore. - Vol. 112.2004, 3, p. 239-253
Publisher:	Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore
Subject:	cash-in-advance \| endogenous growth \| indeterminacy

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Extent:	text/html
Type of publication:	Article
Classification:	D90 - Intertemporal Choice and Growth. General ; E32 - Business Fluctuations; Cycles ; E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010786931