2024-03-29T05:35:56Z
https://nagoya.repo.nii.ac.jp/oai
oai:nagoya.repo.nii.ac.jp:00008784
2023-11-13T02:04:09Z
659:853:854:904
Spillover Effect, Current Account, and the Composition of Government Expenditure
KAWAHARA, Shinya
open access
This paper examines how changing the composition of government expenditure affects long-run levels of world interest rates, current accounts and welfare in a two-country overlapping generations model. We consider two types of government expenditure, one for production and the other for consumption. We show that if the complementarity between productive government expenditure and private capital is sufficiently small, increasing the composition of productive government expenditure in one country improves its current account. We also show that increasing the composition of productive government expenditure has a positive spillover effect on a country with a current account deficit but has an ambiguous effect on a country with a surplus. From dependence on the spillover effect, non-cooperative choices by two countries on the composition of government expenditure can be shown to differ from cooperative ones
名古屋大学大学院経済学研究科
2006-12-25
eng
departmental bulletin paper
VoR
https://doi.org/10.18999/ecos.54.3.49
http://hdl.handle.net/2237/10535
https://nagoya.repo.nii.ac.jp/records/8784
10.18999/ecos.54.3.49
0022-9725
経済科学
54
3
49
63
https://nagoya.repo.nii.ac.jp/record/8784/files/ecos_54_3_49.pdf
application/pdf
1.4 MB
2018-02-19