The Household E ffects of Government Spending

Dynamic employment and hours e!ects of government spending shocks

In this paper, we analyze the dynamic behavior of employment and hours worked per worker in a stochastic general equilibrium model with a matching mechanism between vacancies and unemployed workers. The model is estimated for the US using the Generalized Methods of Moments (GMM) estimation technique. An increase in government spending raises hours worked per worker, and crowds out private consu...

Government Spending and Growth

The Optimal Share of Property Rights Protection Expenditure in Total Government Spending: The Case of Iran

Abstract The main purpose of this paper is to obtain the optimal amount of expenses of government relating to the protection of property rights (PPRs). To achieve these purposes we have introduced concept of social intelligence with respect to PPRs and then developed different growth model from existing literature. In the second step the optimal share of government spending on the PPRs is calcu...

The Two Faces of Government Spending

The Distributional Consequences of Government Spending

This paper examines the mechanism through which pro-growth policies such as government spending on infrastructure might a¤ect the dynamics of inequality. We develop a model in which government-provided infrastructure is not only the engine of growth, but also a critical determinant of the distributions of wealth, income, and welfare. Government spending on infrastructure by itself is shown to b...