Monopolistic competition, increasing returns, and the effects of government spending.(model of government spending): An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1996. The length of the article is 8836 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The dynamic effects of government spending are considered in a general equilibrium model with monopolistic competition and increasing returns. In the economy, changes in the level of government spending endogenously raise total factor productivity, even though the spending itself is entirely wasteful. This leads to several results which contrast with the effects of government spending policies in environments with constant returns. A permanent increase in government spending increases the steady-state wage and may increase steady-state consumption. Also, regardless of its persistence, a temporary shock to government spending may simultaneously raise output, investment, the real wage, and consumption. (Printed by permission of the publisher.)

Citation Details
Title: Monopolistic competition, increasing returns, and the effects of government spending.(model of government spending)
Author: Michael B. Devereux
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1996
Publisher: Ohio State University Press
Volume: v28 Issue: n2 Page: p233(22)

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