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Productive government expenditure and economic growth

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We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. Starting with the seminal paper of Robert Barro (1990) we show that an understanding of the core results of the ensuing contributions can be gained from the study of...

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Bibliographic Details
Main Authors: Irmen, Andreas (Author) , Kuehnel, Johanna (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Heidelberg University of Heidelberg, Department of Economics May 2008
Series:Discussion paper series / Universität Heidelberg, Department of Economics no. 464
In: Discussion paper series (no. 464)

Subjects:
Arbeitspapier
Graue Literatur
Übersichtsarbeit
Online Access:Resolving-System, Volltext: http://hdl.handle.net/10419/127284
Verlag, Volltext: http://www.awi.uni-heidelberg.de/with2/Discussion%20papers/papers/dp464.pdf
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Author Notes:Andreas Irmen and Johanna Kuehnel

MARC

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520 |a We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. Starting with the seminal paper of Robert Barro (1990) we show that an understanding of the core results of the ensuing contributions can be gained from the study of their respective Euler equations. We argue that the existing literature incorporates many relevant aspects, however, policy recommen- dations tend to hinge on several knife-edge assumptions. Therefore, future research ought to focus more on idea-based endogenous growth models to check the robustness of policy recommendations. Moreover, the inclusion of hitherto unexplored types of government expenditure, e. g., on the "rule of law", would be desirable. 
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