Productive government expenditure and economic growth

Arbeitspapier

We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. Starting with the seminal paper of Robert Barro (1990) we show that an understanding of the core results of the ensuing contributions can be gained from the study of their respective Euler equations. We argue that the existing literature incorporates many relevant aspects, however, policy recommendations tend to hinge on several knife-edge assumptions. Therefore, future research ought to focus more on idea-based endogenous growth models to check the robustness of policy recommendations. Moreover, the inclusion of hitherto unexplored types of government expenditure, e. g., on the “rule of law”, would be desirable.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2314

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; Structure and Scope of Government: General ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Public Goods ; National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock ; One, Two, and Multisector Growth Models
• Subject: economic growth ; government expenditure ; public goods ; fiscal policy ; Öffentliche Ausgaben ; Öffentliches Gut ; Produktivität ; Neue Wachstumstheorie ; Finanzpolitik ; Wirtschaftspolitische Beratung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Irmen, Andreas ; Kuehnel, Johanna
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/26359
• Last update: 10.03.2025, 11:45 AM CET