The composition of government expenditure and its consequences for macroeconomic performance
Article Abstract:
The intertemporal optimizing market-clearing framework was used to compare the effects of government infrastructure expenditure and government consumption expenditure on macroeconomic adjustment and performance. The time path of the capital stock was traced to determine its reactions to permanent and temporary changes in government expenditure. The results showed that government expenditure exerts a direct crowding-out effect and causes intertemporal trade-offs between the short-rum capital accumulation rate and the consequent capital stock change.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1995
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Risk, the financial market, and macroeconomic equilibrium
Article Abstract:
A three-agent model describing risk, financial market conditions and macroeconomic equilibrium is developed and analyzed. The study attempts to establish an optimal framework which integrates uncertainty, asset market performance and other economic variables. It is shown that increased risk associated with state policy contradicts nonstochastic macro model predictions.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1993
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