Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Government Spending in a Simple Model of Endogeneous Growth

Robert J. Barro
Journal of Political Economy
Vol. 98, No. 5, Part 2: The Problem of Development: A Conference of the Institute for the Study of Free Enterprise Systems (Oct., 1990), pp. S103-S125
Stable URL: http://www.jstor.org/stable/2937633
Page Count: 23
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Government Spending in a Simple Model of Endogeneous Growth
Preview not available

Abstract

One strand of endogenous-growth models assumes constant returns to a broad concept of capital. I extend these models to include tax-financed government services that affect production or utility. Growth and saving rates fall with an increase in utility-type expenditures; the two rates rise initially with productive government expenditures but subsequently decline. With an income tax, the decentralized choices of growth and saving are "too low," but if the production function is Cobb-Douglas, the optimizing government still satisfies a natural condition for productive efficiency. Empirical evidence across countries supports some of the hypotheses about government and growth.

Page Thumbnails

  • Thumbnail: Page 
S103
    S103
  • Thumbnail: Page 
S104
    S104
  • Thumbnail: Page 
S105
    S105
  • Thumbnail: Page 
S106
    S106
  • Thumbnail: Page 
S107
    S107
  • Thumbnail: Page 
S108
    S108
  • Thumbnail: Page 
S109
    S109
  • Thumbnail: Page 
S110
    S110
  • Thumbnail: Page 
S111
    S111
  • Thumbnail: Page 
S112
    S112
  • Thumbnail: Page 
S113
    S113
  • Thumbnail: Page 
S114
    S114
  • Thumbnail: Page 
S115
    S115
  • Thumbnail: Page 
S116
    S116
  • Thumbnail: Page 
S117
    S117
  • Thumbnail: Page 
S118
    S118
  • Thumbnail: Page 
S119
    S119
  • Thumbnail: Page 
S120
    S120
  • Thumbnail: Page 
S121
    S121
  • Thumbnail: Page 
S122
    S122
  • Thumbnail: Page 
S123
    S123
  • Thumbnail: Page 
S124
    S124
  • Thumbnail: Page 
S125
    S125