Productive government spending, growth, and sequential voting

Productive government spending, growth, and sequential voting

This paper considers an endogenous growth model with productive government spending in which overlapping generations of agents vote sequentially on policy. With sequential majority voting, there is a multiplicity of politico-economic equilibria originating from self-fulfilling policy expectations. Some of these equilibria are Pareto-inefficient and there are endogenous cycles. A constitutional ...

Government Spending and Growth

Government Spending and Pocketbook Voting: Quasi-Experimental Evidence from Romania

This paper addresses the question of whether incumbents can buy political support through targeted public spending. Using a regression discontinuity approach which takes advantage of the quasi-experimental design of a recent Romanian government program that distributed coupons worth 200 Euros to poor families towards the purchase of a computer, we find that program beneficiaries were significan...

Growth and Local Government Spending in Georgia

This brief is a technical analysis that estimates the effect of local government spending on economic growth at the county level in Georgia. Recent studies in the growth and economic development literature have emphasized the impact of government spending on growth at the national and state levels, but few of these studies have attempted to identify growth–enhancing government expenditures at t...

Schumpeterian Growth with Productive Public Spending and Distortionary Taxation

The latest version of Schumpeterian growth theory eliminates the scale effect by positing a process of development of new product lines that fragments the aggregate market in submarkets whose size does not increase with population. A key feature of this process is the sterilization of the effect of the size of the aggregate market on firms’ incentives to invest in the growth of a given product ...