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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...
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these autonomous expenditures is that in contrast to investment they are non-capacity creating. The model combines the …
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The theme of this extensive book is the relationship between consumption and growth in the context of the long run theory of effective demand. Taking Schumpeter's views on economic development as a starting point, the author proposes an original framework for the analysis of consumption patterns...
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This paper uses the standard one-sector neoclassical growth model to investigate why China’s consumption has been low … and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … one form or the other, these distortions have implied significant transfers from households to firms. If China is to …
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