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THE INFLUENCE OF DIFFERENT FORMS OF GOVERNMENT SPENDING ON DISTRIBUTION AND GROWTH
Author(s) -
Commendatore Pasquale,
Panico Carlo,
Pinto Antonio
Publication year - 2011
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2009.04081.x
Subject(s) - economics , investment (military) , investment function , government (linguistics) , hysteresis , distribution (mathematics) , government spending , macroeconomics , government expenditure , keynesian economics , growth theory , politics , monetary economics , market economy , public finance , production (economics) , mathematical analysis , linguistics , philosophy , physics , mathematics , quantum mechanics , political science , welfare , law
This paper deals with the influence of different types of government expenditure on growth in a post‐Keynesian framework. The analysis considers a government sector with a balanced budget and an autonomous and non‐linear investment function, interpreted along a Kaleckian and a Classical‐Harrodian line. It shows under which conditions different types of government expenditure are beneficial or detrimental for economic growth, comparing some results with those reached by Barro in his 1990 Journal of Political Economy article, and points out the emergence of phenomena like multiple equilibria, hysteresis and low growth traps.