Government spending in a simple model of endogenous growth-英文文献.pdfVIP

Government Spending in a Simple Model of Endogeneous Growth The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters. Citation Barro, Robert J. 1990. Government spending in a simple model of endogeneous growth. Journal of Political Economy 98(S5): 103-125. Published Version doi:10.1086/261726 Accessed September 18, 2016 2:28:23 AM EDT Citable Link /urn-3:HUL.InstRepos:3451296 Terms of Use This article was downloaded from Harvard Universitys DASH repository, and is made available under the terms and conditions applicable to Other Posted Material, as set forth at /urn- 3:HUL.InstRepos:dash.current.terms-of-use#LAA (Article begins on next page) Government Spending in a Simple Model of Endogenous Growth RobertJ. Barro Harvard Universityand National Bureau of EconomicResearch 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 expendi- tures; the two rates rise initially with productive government expen- ditures but subsequently decline. With an income tax, the decen- tralized 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.