Arbeitspapier
Government spending composition in a simple model of Schumpeterian growth
This paper investigates the relevance of government purchasing behavior for innovation-based economic growth. We construct a parsimonious Schumpeterian growth model in which demand from the public sphere can effectively alter the economy's rate of technological change. We incorporate results of various empirical studies arguing that public sector demand acts as incentive for private innovation activities. In contrast to the standard Schumpeterian growth framework, we account for industry heterogeneity in terms of innovation potential. This extension allows to bring government demand policy within the realm of the growth policy debate. By varying the composition of its purchases, the government can induce a reallocation of private resources to stimulate the rate of technological change. This comes along with temporarily faster economic growth. Moreover, our welfare analysis implies that it is always worth implementing a policy in which industries benefit from public purchases subject to their specific innovation size.
- Sprache
-
Englisch
- Erschienen in
-
Series: Jena Economic Research Papers ; No. 2009,101
- Klassifikation
-
Wirtschaft
Fiscal Policy
National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
National Government Expenditures and Related Policies: Procurement
Innovation and Invention: Processes and Incentives
Management of Technological Innovation and R&D
One, Two, and Multisector Growth Models
- Thema
-
public demand
endogenous technological change
Schumpeterian growth
Öffentliche Beschaffung
Innovation
Endogener technischer Fortschritt
Schumpeterismus
Neue Wachstumstheorie
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Wiederhold, Simon
- Ereignis
-
Veröffentlichung
- (wer)
-
Friedrich Schiller University Jena and Max Planck Institute of Economics
- (wo)
-
Jena
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Wiederhold, Simon
- Friedrich Schiller University Jena and Max Planck Institute of Economics
Entstanden
- 2009
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