In this paper we create an index that measures the growth of the 50 state governments and the District of Columbia's expenditures relative to the growth of their private sector economies. In a state where government expenditures grow faster than the private sector economy as a whole, the amount...

Quantity rationing is widely used by the traditional literature on public health care expenditure determination as a means to justify the coexistence of the private health care sector. However, this artefact is not suitable for a wide range of health care services that have an "all or nothing"...

Increases in defense spending – the largest portion of discretionary government spending in the U.S. – are negatively associated with private sector firm innovation measured using various patent-based proxies. A central finding in our study is that the extent to which government spending...

The renewed interest in the role of the private sector as a powerhouse for enhancing economic development provides the impetus for this study. Specifically, the study investigates the effects of public spending on private sector investment amidst rising fiscal deficit, with the view of...

We utilize an overlapping generations model with endogenous production and incomplete markets to quantify the distortionary costs associated with financing the increase in government expenditures directed to investments in the private sector in 2008 and 200 (a.k.a. ‘the bailout'), and its...

This paper considers the impact of changes in the payment discipline of governments on the private sector. We argue that increased delays in public payments can affect private sector liquidity and profits and hence ultimately economic growth. We test this prediction empirically for European...