This paper considers the effects of corruption and government spending on economic growth. It starts from an endogenous growth model and extends it to account for the detrimental effects of corruption on the potentially productive components of government spending, namely military and investment spending. The resulting model is estimated on a sample of African countries and the results show, fi...

We document a secular change in the structure of government consumption spending: Over time purchases relatively more private-sector goods, and relies less on its own production value added. This process alters transmission fiscal policy, by dampening response hours, public added, labor share to spending shocks, while leaving total output unchanged. rationalize these facts general equilibrium m...