Productivity and effective demand: Assessing the disaggregate public spending

Artikel

In this paper, we attempt to support the argument regarding the endogeneity of productivity to effective demand. Unlike most of the works on the topic, we focus on the role that both public investment and public consumption have on productivity. We suggest, at the theoretical level, that public investment has unambiguously positive effects on productivity, whereas the effect of public consumption is ambiguous, being not necessarily large or positive. Our econometric results, using data of selected Latin American economies, support the previous argument. The policy recommendation that follows from these results is that an expansionary fiscal policy based on public investment can indeed enhance the productivity evolution and consequently economic growth and development.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Investigación Económica ; ISSN: 2594-2360 ; Volume: 78 ; Year: 2019 ; Issue: 309 ; Pages: 107-132 ; Ciudad de México: Universidad Nacional Autónoma de México (UNAM), Faculdad de Economía

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Fiscal and Monetary Policy in Development ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: Productivity ; aggregate demand ; public spending ; Latin America

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Zavaleta, Josué ; Cruz Blanco, Moritz Alberto
• Event: Veröffentlichung
• (who): Universidad Nacional Autónoma de México (UNAM), Faculdad de Economía
• (where): Ciudad de México
• (when): 2019

Further information

• DOI: doi:10.22201/fe.01851667p.2019.309.70121
• Handle: http://hdl.handle.net/10419/217360
• Last update: 10.03.2025, 11:41 AM CET